Defensecontractors — Trading Ideas on TradingView

Can AI Weather the Storm of Volatility?BigBear.ai has captured the market's attention with its dramatic stock performance, navigating through a sea of volatility with recent gains fueled by significant contract wins and positive AI sector developments. The company's journey reflects a broader narrative in the tech industry: the high stakes of betting on AI innovation. With its stock soaring over 378% in the last year, BigBear.ai demonstrates the potential for rapid growth in an era where AI is increasingly central to strategic sectors like defense, security, and space exploration. However, the narrative isn't without its twists. Analyst warnings about cyclical business patterns and valuation concerns introduce a layer of complexity to the investment thesis. BigBear.ai's ability to secure pivotal contracts with the U.S. Department of Defense showcases its technological prowess, yet the challenge lies in converting this into sustainable profitability. This scenario invites investors to ponder the delicate balance between innovation, market sentiment, and financial stability in the AI landscape. The strategic acquisition of Pangiam and partnerships like the one with Virgin Orbit illustrate BigBear.ai's ambition to not only ride the wave of AI hype but also to steer it into new territories. These moves are about expanding market presence and redefining what AI can achieve in practical, real-world applications. As BigBear.ai continues to evolve, it challenges us to consider how far AI can go in reshaping industries and whether the market can keep pace with such rapid technological advancements. This saga of BigBear.ai is a microcosm of the broader AI investment landscape, urging us to look beyond immediate gains to the long-term vision and viability of AI-driven companies.

LMT a defense large cap dips for buyers LONG LMT has been flat sideways since a good earnings beat 5 weeks ago. Lockheed Martin as a defense contractor is in a growth environment with the US supplying arms to Ukraine as well a Isreal. Domestic stockpiles and those of NATO are somewhat depleted. The contraacts will not catch up for years. Gone are the days of making face masks and gowns during COVID to keep revenues flowing in. I see this 2% dip as a change to get a small discount on what should be a stock with upside for some years to come. This is a long swing trade not expectant of a 3-4% profit in a week. I expect to hold this at least until the next earnings if not through the presidential elections where the defense and national security perspectives of the incoming or returning president may be a factor in the fundamentals of defense contractors.

Technical Analysis of RTX (Raytheon Technologies) Weekly Chart Subscribe & Follow For: ➞ Quick Chart Summary Breakdown ➞ Pertinent Supply Demand Zones and Considerations ➞ US Stocks / Crypto Only ➞ Before / After Analysis 🙏 Like & Subscribe 💬 Drop a line and let me know what you think 🍯 Coin donations always appreciated 🚀 Boost this post to share value NYSE:RTX is currently exhibiting a double megaphone pattern on the weekly chart, indicating a period of increased volatility and potential uncertainty in the market sentiment. This pattern typically suggests conflicting forces at play, with widening price swings signaling indecision among traders. Key Pattern: Double Megaphone A megaphone pattern, also known as a broadening formation, consists of two expanding trendlines that diverge away from each other. This pattern reflects growing volatility and uncertainty, with higher highs and lower lows being established over time. In this scenario with RTX we are showing two long term trends one inside of another. Explanation: Textbook Answer: This double megaphone pattern often signifies a struggle between bulls and bears, with neither side gaining a clear advantage. It also represents volatility & opportunity. It's up to us to determine price point where we can capitalize on positioning for profitability! Real World Answer: Manipulation & Perfect Timing As the price oscillates between the expanding trendlines, traders should exercise caution and closely monitor key support and resistance levels for potential trading opportunities. I got a feeling this one is going to be a mover! RSI Breakout with Hidden Divergence: In addition to the double megaphone pattern, RTX is exhibiting a notable breakout on the Relative Strength Index (RSI) with hidden bullish divergence and the highs are currently compromised with clear and visible hidden bearish divergence leading me to believe that we will revisit the 5th swing level (or in the vicinity of) one more time and see how well prices hold. Current Situation: At present, NYSE:RTX is approaching a critical juncture within the double megaphone pattern. Traders must evaluate whether the price will push through the upper trendline or revisit the lower trendline, known as the 5th swing in Elliott Wave Theory. Potential Scenarios: Managing Breakout: If RTX manages to break above the upper trendline of the double megaphone pattern, it could signal a bullish continuation, with the potential for further upside momentum. Traders may consider initiating long positions with appropriate risk management strategies in place. Revisit of 5th Swing (Lower Trendline) Conversely, if RTX fails to sustain upward momentum and revisits the lower trendline, it could indicate a bearish reversal or consolidation phase. Traders should be prepared for increased volatility and monitor key support levels for potential downside targets. Key Levels to Watch: Resistance: Upper trendline of both of the megaphone patterns. Support: Lower trendline (5th swing) and previous swing lows within the pattern. Conclusion: In conclusion, the presence of a double megaphone pattern on the RTX weekly chart suggests heightened volatility and uncertainty in the market. Traders should remain vigilant and adapt their strategies based on the price action relative to the pattern's trendlines. Granted the series of unfortunate events occurring on the global stage I could almost anticipate what is going to happen here in the long term As always, it's essential to incorporate risk management techniques and exercise caution when navigating such volatile market conditions. Note: Ensure to identify your price levels accordingly. This analysis is for educational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a financial advisor before making any investment decisions.

Huntington Ingalls: Cup with Handle with 89% Upside Potential HII is a Shipbuilder US Defense Contractor that has formed a Cup with Handle Pattern with MACD Hidden Bullish Divergence, and it is currently breaking free from the handle and will soon challenge the Cup's Horizontal Resistance. If it breaks out, HII could nearly double up in value all the way to $480 as it goes for the measured move.

Boeing BA - A Dark Harbour I have never looked at Boeing until today, when I saw some guy posting ideas about it while I was having lunch and I didn't even recognize the ticker, and so I took a look at it, and was surprised to see what I found. In considering this company, I completely understand that they've had problems with their planes, and big ones. But I have also said that I do not put much weight in the ostensible correlation between fundamentals of a company and price. So long as the equity is still being maintained by Wall Street's behemoths, price action will remain orderly made and constitute a fractal that is rationally written and contains the combined intelligence of all market participants. Boeing is really notable on the monthly charts: Frankly, its bullish price action looked even better than what stuff like AAPL and TSLA printed during this unsustainable Federal Reserve money printer-backed tractor pull to SPX 4,800, and it occurred before COVID, and was accompanied by heavy distribution. It only finally corrected when COVID hit, and yet it only swept out the '16 low, which led to the original impulse to $450. Even more taste bud-piquing is the weekly chart: BA has not had a shred of bullish impulse since March of 2021. More or less, while the entire market went ape-up in a straight line, Boeing has just grinded downwards. This is highly indicative of significant smart money accumulation. When the big 2022 correction started, Boeing lost 30% like everyone else, but formed a 24-month double bottom and protected its pre-COVID low with a generous wick and a healthy bounce. More importantly, there is a gap that appears both on the daily and weekly candles at $330, which is exceptionally notable considering this mid-term range high, printed 18 months ago, wasn't far away at $~279. I believe that a significant shakeout in the market will come shortly. VIX - 9x8 = 72 But based on the price action of Boeing, I can't help but feel this is the definition of oversold and that an expectation from short sellers that this is going to turn around and rip south to new lows is going to be met with only one outcome: liquidation. For other defense contractors like Lockheed Martin and Raytheon, although they have totally different (and much more bullish) price action compared BA, they share the characteristic of severely lagging the overall market in terms of bull impulse. And these are arguably the most critical companies underpinning the United States and the globalist empire. This leads me to believe that what lies ahead is a catalyst that will see defense and aerospace stocks go on a _significant_ bull run, providing an unlikely harbour amid an overall market that sees both equities and commodities revisiting (and breaking) pre-COVID market structure. SPX / ES - Bull Whips and Bear Saws For Boeing, it's still too expensive to buy, trading above the equilibrium point of this June-forward dealing range. However, if this thesis that Boeing will go on a tear and not turn around and die is correct, I would want to see it fall to only a certain point and not flirt with the double bottom or the even the June gap lows. The best buy signal, hands down, will be a dump into the $135 range, accompanied by market makers reverently supporting this area. If so, you should definitely expect this whole 18 month range below $280 gets cleaned up, and likely in a highly aggressive fashion. The question is, what serves as a catalyst for the defense and aerospace industry to moon? There are no pleasant answers.