Technical Analysis:
Based on the latest market data, LMT is showing bearish signals with RSI-14 at 25.10, well into oversold territory. The MACD indicator (-14.44) also suggests strong downward momentum.
The stock has broken below all major moving averages:
- Currently trading below SMA-5 (439.49)
- Below SMA-20 (463.88)
- Significantly below SMA-200 (510.21)
News Impact Analysis:
Recent news has created bearish pressure on LMT:
- Trump's comments about potential military spending cuts caused defense stocks to decline, with LMT falling over 3%
- However, LMT secured two significant defense contracts worth $1.4 billion:
- $481 million contract for IBCS software development
- $899.6 million contract for Poland's air defense programs
Price Prediction for Next Week:
Based on Fibonacci levels and technical indicators:
- Support levels: $416.26 (Fibonacci S2)
- Resistance levels: $441.99 (Fibonacci pivot)
Expected price movement scenarios:
Base case (60% probability): $415-425 range
- Continued pressure from military spending concerns
- Technical oversold conditions may limit downside
Bearish case (30% probability): Below $415
- Further military budget cut discussions
- Break below current support levels
Bullish case (10% probability): Above $425
- Oversold bounce
- Positive defense contract news flow
Recommendation: SELL
- Current technical indicators show strong bearish momentum
- Breaking below key support levels
- Political uncertainty regarding defense spending
- Next support at $416.26, suggesting further downside potential
Target entry for short positions: Current market price ($423.19)
Stop loss: $441.99 (Fibonacci pivot)
Target exit: $416.26 (Fibonacci S2)
Technical Analysis:
Based on the latest market data, LMT is showing bearish signals with RSI-14 at 25.10, well into oversold territory. The MACD indicator (-14.44) also suggests strong downward momentum.
The stock has broken below all major moving averages:
- Currently trading below SMA-5 (439.49)
- Below SMA-20 (463.88)
- Significantly below SMA-200 (510.21)
News Impact Analysis:
Recent news has created bearish pressure on LMT:
- Trump's comments about potential military spending cuts caused defense stocks to decline, with LMT falling over 3%
- However, LMT secured two significant defense contracts worth $1.4 billion:
- $481 million contract for IBCS software development
- $899.6 million contract for Poland's air defense programs
Price Prediction for Next Week:
Based on Fibonacci levels and technical indicators:
- Support levels: $416.26 (Fibonacci S2)
- Resistance levels: $441.99 (Fibonacci pivot)
Expected price movement scenarios:
Base case (60% probability): $415-425 range
- Continued pressure from military spending concerns
- Technical oversold conditions may limit downside
Bearish case (30% probability): Below $415
- Further military budget cut discussions
- Break below current support levels
Bullish case (10% probability): Above $425
- Oversold bounce
- Positive defense contract news flow
Recommendation: SELL
- Current technical indicators show strong bearish momentum
- Breaking below key support levels
- Political uncertainty regarding defense spending
- Next support at $416.26, suggesting further downside potential
Target entry for short positions: Current market price ($423.19)
Stop loss: $441.99 (Fibonacci pivot)
Target exit: $416.26 (Fibonacci S2)