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Lockheed Martin Corp (LMT) - January 30, 2024


In what has become a key theme of the current earnings season, last week defense contractor Lockheed Martin (LMT) beat the street on earnings. The street reacted moderately negatively to the news. The shares are down 6.7% over the last week, while the S&P 100 Index is up 1.9%.

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Lockheed Martin has been trending downward in the SIA S&P 100 Index Report for the last nine months. In April, it fell out of the green zone and since then, the shares are down 5.3% while the index is up 25.0%. LMT rolled back down into the Red Unfavored Zone in November. Since then, the shares are down 3.6% while the index is up 9.8%.

LMT is currently in 85th place down 11 spots in the last week.

Candlestick Chart Shows a Downturn Underway:

Lockheed Martin (LMT) shares have broken down again. After trending upward through 2021 and 2022, upward momentum for LMT started to fade in 2023 with the shares peaking just short of $500.00 last spring. In the late summer, the shares snapped an uptrend line and started to slide, but they managed to rebound later in the fall, taking advantage of a broad market bounce.

The bounce was contained by a downtrend resistance line earlier this month and last week, the shares sold off on volume after earnings came out, signaling a bearish turn in sentiment. Taking out both the 10-week moving average and $440.00 support (which reverses polarity to become resistance) signals that a new retreat is underway.

Initial downside support may appear around the September low and the bottom of a gap in the $390.00 to $410.00 area, followed by $380.00 which was successfully tested several times back in 2022.

Point and Figure Chart Breaks Down Again:

Since peaking back in April of last year, Lockheed Martin (LMT) shares have been crumbling, completing a series of bearish pattern breakdowns. The bottom really started to fall out back in August to October but the shares managed to claw that back in November and December.

Bulls were unable to overcome resistance near $467.75. However, this month, LMT has started to turn downward once again, with a bearish Double Bottom breakdown signaling the start of a new downleg.

Currently, the shares are testing support near $427.65, a close below there would confirm the start of a new downtrend. Should that occur, the next potential downside may appear in the $387.15 to $394.95 area where previous highs and lows, the October low and a horizontal count cluster, followed by the summer 2022 low near $372.05. Initial upside resistance appears near $449.50 where a 3-box reversal, previous support and resistance and the $450.00 round number cluster.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, LMT is exhibiting short-term weakness across against the asset classes.

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