Current trend

Shares of RTX Corp., an American aerospace and defense conglomerate, are correcting at 101.86.

Yesterday it became known that management signed a contract with the US Department of Defense in the amount of 344.0 million dollars for the modernization of two types of missile defense systems installed on ships, SM-2 Block IIICU and SM-6 Block IU. The project will be financed by sales to Australia, Canada, Japan, and Korea.

Against the background of the conclusion of this agreement and the positive financial report, Wells Fargo & Co. analysts maintained the emitter's rating at the "Outperform" level and lowered the target price from 120.0 dollars to 119.0 dollars per share. Experts believe that the past peak in aircraft engine recalls due to problems at Pratt & Whitney will have a positive impact on revenue in the future and will help stabilize performance.

The financial report itself was published on April 23: revenue amounted to 19.31 billion dollars, surpassing both the 18.46 billion dollars forecast and 17.2 billion dollars over the same period last year. Earnings per share (EPS) were 1.34 dollars, above preliminary estimates of 1.23 dollars and 1.22 dollars last year.

Support and resistance

On the В1 chart, the asset is rising within the corridor with the borders of 105.00–98.00.

Technical indicators hold a fairly strong buy signal: the Alligator indicator holds a stable range of fluctuations, and fast EMAs are significantly above the signal line, while AO histogram, being in the purchase zone, forms corrective bars.

Support levels: 100.00, 95.30.

Resistance levels: 102.50, 106.50.

Trading tips

If the global growth of the asset continues and the price consolidates above the resistance level of 102.50, one may open long positions with the target of 106.50 and stop-loss of 101.00. Implementation time: 7 days and more.

If the asset continues to decline and the price consolidates below the minimum of 100.00, one can open short positions with the target of 95.30 and stop-loss of 102.00.