Market News & Analysis


Top Story

U.S. defense stocks set to benefit from Middle East geopolitical tensions (LMT, LHX)

Lockheed Martin Corp (LMT) – Fresh all-time high, further potential upside ahead



click to enlarge charts

  • LMT has staged a bullish breakout on last Fri, 03 Jan 2019 from a 3-month range configuration in place since 17 Sep 2019. Medium-term upside momentum remains intact as seen by the weekly & daily RSI oscillators.
  • Relative strength analysis from its ratio (LMT/SPY) suggest outperformance of LMT against the S&P 500.
  • Bullish bias in any dips above 393.90 for a further potential push up to target the next resistances at 461.10/465.90 and 484.30. On the other hand, a break with a daily close below 393.90 invalidates the bullish breakout for a choppy slide towards the next support at 359.15 (former swing high areas of 02 Feb/24 Apr 2018).
L3Harris Technologies Inc (LHX) – Eyeing a potential break above 271.31 current all-time high


click to enlarge chart

  • Last Fri, 03 Jan 2019, the share price of LHX has staged a gapped up above the intermediate swing highs areas of 23/24 Dec 2018 and rallied by 3.70%.
  • Elements are bullish with its price action that has continued to evolve within a major ascending channel in place since 26 Dec 2018. The upper boundary of the ascending channel stands at 248.30 which also confluences with the 0.618 Fibonacci expansion of the up move from 26 Dec 2018 low to 06 Sep 2019 high projected from 05 Nov 2019 low.
  • Medium-term upside momentum of price action has resurfaced as indicated by the bullish breakout seen in the daily RSI oscillator from a corresponding significant descending resistance after a prior bullish divergence signal.
  • Relative strength analysis from its ratio (LHX / SPY) has indicated that LHX has started to show outperformance against the S&P 500.
  • Bullish bias in any dips above 192.10 medium-term pivotal support for a further potential push up to retest 217.31 current all-time high before targeting the next resistance at 248.30. On the other hand, a break with a daily close below 192.10 negates the bullish tone for a slide towards the next support at 170.55 (former swing range resistance from 24 Apr/16 Oct 2018).

Charts are from eSignal 


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.