In today's stock of the day, let's take a closer look at Lockheed Martin, which is currently caught in a sideways movement, hovering between a key support and resistance level.
The technical situation is quite clear—this stock is not tradable at the moment. Why? Because the price is positioned right in the middle of the range, between a strong horizontal support and a descending resistance line. This is not an ideal setup for entering positions, as there's no clear direction or momentum yet. But that doesn’t mean traders should ignore it—on the contrary, it’s time to stay alert and prepare for a breakout scenario.
Looking at the chart, we can identify a horizontal purple support zone—a line that has repeatedly held the price in the past. A break below this support would be a strong bearish signal and could open the door for a significant downward move. Traders should consider this a signal to go short if confirmed by a daily close beneath the level.
To the upside, we have a red downtrend line acting as resistance. This line connects lower highs since January and serves as the ceiling for price action. There’s no buy signal yet, but a breakout above this red trendline would serve as an invitation to go long, especially if accompanied by strong volume and confirmation of sentiment shift.
Given the improving sentiment in global markets, a bullish breakout seems slightly more likely at this point. However, until the breakout is confirmed, Lockheed Martin remains a wait-and-see setup. Traders should be patient and ready to act when either boundary of this range is breached.