With the wars overseas going on, its no surprise that Aerospace/defense has been the top performing industry group by Investors Business Daily for a good amount of time. The stock is ranked 3rd best out of the whole group, being also the best technically. I found Raytheon Company (RTN) stock back over a month ago when it 1st pressed to $48 on 9/5. Now trading close to $50, not only is it a great buy for the next few months, but I say it will move to $55 (or another 10%+).
Since it’s first run to $48 resistance, it met that resistance a number of times over the next few weeks. In fact, it hit between $47.95 and $48 over 7 times within those weeks since 9/5. Finally, at the bitter end of the day on 9/28, which is my sister’s birthday cool enough, it broke $48 and climbed a few pennies to hit a high of $48.13. It was on that day that I bought in my 1st position, and new the skies were going to be blue going forward.
It took just two days before the stock shot up to $49 on a strong accumulation day, then pressed to nearly $50 just a few days after that. I write about the stock now though to note a very heavy accumulation day yesterday on nearly 170% times average daily volume that closed the stock yet closer to $50 at $49.83. I bought more here, and cite the case that RTN may easily break $50 move towards $51, $52 by the end of next week. The strong volume fuled the originally push past $48 resistance, and the accumulation continues yet still.
The last point I want to note is that Raytheon Company has earnings set for October 27th according to IBD, and the company should easily beat analyst expectations. Until then though, a break above $49 on strong volume would signal a good buy point if you are looking to take your 1st position, or you can wait until earnings date nears. Chart is attached.
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