Published On: Thu, Feb 9th, 2017

Raytheon Company charts tecnically intact


Despite president Trump pushing for lower margins on defence products, I do believe that for Raytheon Company the long-term trend remains intact. 

It faces little competition and has the benefit of huge barriers to entry. Therefore, in the medium-term, when one strips out any near-term profit taking I sense the long-term outlook of the price should remain positive.

It was announced on February 8, that Raytheon Company (NYSE: RTN) and Utilidata have formed a strategic alliance to help power utilities proactively detect, defend against, and respond to cyber threats.

The effort will combine Utilidata’s experience in the use of real-time data from the electrical grid to detect and respond to cyber-attacks and Raytheon’s expertise in proactive cyber threat hunting, automation and managed security services to provide world-class cyber security, analytics and other innovative technologies.

Sources:, Spotlight Ideas     

Raytheon Company, with 2016 sales of $ 24 billion and 63,000 employees, is a technology and innovation leader specializing in defence, civil government and cybersecurity solutions. It would appear to be in the sweet spot of president Trump’s policy of building a stronger cyber security networks and boosting the US defence programme. 

I feel it combines the best overall profile when compared to its peer group of Lockheed Martin, Northrup Grumman, Thales SA and BAE Systems Plc.

Raytheon Company 10-year chart:

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Source: Spotlight Ideas 

I recognise that the long-term chart has struck out on an almost uninterrupted impulsive channel since 2013, however, there is more to come… although one may not wish to buy immediately at the opening today. At the time of writing, 0840 GMT, both the Dow and S&P 500 futures are tracking slightly lower. 

The inset in the first chart also shows the time technicals out to 30 minutes are either marked as a strong sell or at best neutral. However, move a little deeper into the session and I can see buying return. 

I am a buyer on dips from last night’s close of 148.19, or on a break higher above 148.50.

Parameters (Raytheon Company)

Entry: buy dips from 14.19 or a break above 148.50.

Targets: 154.69… 157.25… 159.33… 161.40.

Stop: 139.

Time horizon: medium-term.

— Edited by Michael McKenna

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