Last week, the leading defense and aerospace company, Lockheed Martin Corp (LMT), plunged after reporting earnings. The company issued downside guidance and that was not well received by Wall Street. The stock is now trading below its 200-week moving average. This puts the stock in a weak technical position on the charts and often signals further downside in the near term.
Traders should now watch for major chart support around the $318.00 area. This important support level is where the stock was defended back in early February 2021. Often, prior support levels will serve as excellent support when they are retested. This is also a key retrace level on the larger time-frame chart. I will be looking for a long side trade when Lockheed Martin Corp (LMT) stock trades down to this key level.
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