February 27

Pick Of The Week – Analysis On Raytheon Technologies (Week 9, 2022)

The world is getting more chaotic and uncertain.

With armed conflict taking place in Ukraine, stock markets around the world are expected to face increased volatility and shocks.

Does this mean that you should stay out of the stock market?

I don’t think so. There’ll always be pockets of opportunities such as this stock that we’ll examine together.

Let’s analyze this stock that’s in the aerospace and defense industry – Raytheon Technologies (RTX).

Performance Of US Stock Market vs Raytheon Technologies

The week started poorly for the S&P 500 futures market. A miraculous U turn took place on Thur, setting the S&P 500 futures to close around 1.25% higher for the week.

This wasn’t the case for RTX as it held firm at the start of last week, before skyrocketing to close the week higher by more than 4.6%!

And the outperformance of RTX isn’t a once-off thing!

As the S&P 500 futures came tumbling down since Jan 22, RTX’s share price has been on the rise. Furthermore, RTX has been forming multiple new all-time highs in Feb 22!

Now, that’s an impressive performance.

With this context and understanding of RTX, what can you expect from RTX in the near future?

How Explosive Is RTX?

RTX is no small company, it has a monstrous market capitalization of $146b! Yet, each up move has been explosive!

RTX has had 6 big up moves ranging between 2.4 and 12.95% in the past 5 months. We are in the midst of its 7th big up move too!

This proves that the price of RTX has the ability to fly and is likely to continue.

What’s the next step that you should take?

Yes, mark out the key price levels of RTX.

Key Price Levels

Why is marking out the key price levels of RTX so important?

These key price points are support and resistance zones which you’ll want to uncover. Support and resistance zones are psychological areas traders pay attention to for a potential change of direction in prices. 

From the chart above, you can see 2 support zones at $92 and $95. These are potential price zones which the share price of RTX could fall to if its momentum fizzles out in the near future, 

Because RTX is an explosive stock, I wouldn’t want its price to pullback to $92 or even $95. I’d prefer the pullback to be shallow before we catch the next explosive up move.

The Strategy You Can Use To Trade RTX

There’ll always be a pullback after a big and explosive up move. Since you’re looking to capture a short term explosive move, you won’t want the share price of RTX to pullback to $95 too. 

Therefore, RTX isn’t ripe for a buy right now. However, a buying opportunity may come real soon, so it pays to be prepared. 

Because the pullback hasn’t occurred and that the entry price to catch such an explosive stock is discretionary, I’ve created an e-course with examples to share this strategy with precision and clarity – The Art Of Explosive Profits (AEP for short). 

You’ll be coached on how to search for strong stocks like RTX instead of relying on hear-say.

You’ll also become fluent in reading charts to shortlist stocks that are about to have an explosive move.

Finally, you’ll learn how to identify the optimized entry and exit points to capture these explosive moves that you’ve been waiting for (in a safe manner, of course)! 

Have a look at the AEP and add this explosive trading strategy to your arsenal to seize more trading opportunities

Why Is RTX The Stock Pick Of The Week?

RTX had gained 4.6% last week as compared to a gain of 1.25% by the S&P 500 futures. This outperformance has been consistent. 

In the past 5 months alone, there have been 6 explosive up moves, with the largest up move measuring 12.95%! This is highly impressive given that it has a market capitalization of $146b.

RTX is in a strong uptrend and its chart suits the AEP framework. 

However, you’ll need to know that I’m not a financial advisor, so please treat this article as education. Have fun conducting your research and I’d love to hear your thoughts in our Facebook Group

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