Northrop Grumman Corporation (NYSE: NOC)
About Northrop Grumman Corporation
Northrop Grumman Corporation operates as a security company. It provides various systems, products, and solutions in autonomous systems, cyber, space, strike, and logistics and modernization, as well as in command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR) to customers worldwide. The company operates Aerospace Systems, Innovation Systems, Mission Systems, and Technology Services segments.
Take a look at the 1-year chart of Grumman (NYSE: NOC) with the added notations:
NOC has formed an important level of support at $340 (green) during the past couple of months. The stock may be coming back down to that level again, and traders could expect some sort of a bounce. However, if the $340 support level were to break, lower prices should follow for NOC.
The Tale of the Tape: NOC has key support at $340. A trader could enter a long position at or around $340 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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Christian Tharp, CMT
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