Today’s stock has started off the week on a strong note, continuing to outperform much of the market. It also plays well with a trend in the market that has been forming due to forces outside of the market. As geopolitical tensions continue to rise, this stock, as well as the sector as a whole, has seen a nice pop in interest surrounding it.
Northrop Grumman (NOC) has made a strong push from when it last entered a demand zone of around 435-440. From there the stock continues to rally up toward the key price of $480, where it is running up against an old support level that has now become resistance. A break through that level implies a possible run higher with the $520 breakdown level being a big price target on our charts.
A long positions could be contemplated here, but again, a break and retest seems to be the highest probability trade when a significant resistance level like this one comes in to play. This helps us determine if the break is real or if it is just a fakeout of a break through this level.
Due to us coming up to a resistance level, be aware that we could run into a pullback here as traders take profits or open short positions, another reason we would want to exercise patience to see if the price has enough buying power behind it to elevate it up through a resistance level.
Be sure to watch my video breakdown for more insight into this possible trade!
When you join The Profit Machine, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. The best part, you’ll receive all my trades every step of the learning process, so not only will you get a world-class education, but you’ll also earn while you learn.
Get a jump start on your options education and put yourself in position to win in 2023. Sign up today! Until then…