Scott doesn’t think WW3 is going to happen anytime soon, but if it does here’s a stock to consider! $RTX – August 2, 2022
RTX
This is Scott with your Chart of the Day. I will be honest with you, I think this whole Nancy Pelosi going to Taiwan thing will end up being a bit of a nothing burger. It is pretty common for members of Congress and the Senate, etcetera, to kind of tour around the world without making a big diplomatic statement, if you know what I mean.
Let’s be honest, it’s not like it’s Dennis Rodman going to Taiwan as he did with North Korea. That was a real political statement. Regardless, if the bombs start dropping my first question is going to be, are they going to cut the rates? And my second question will be, what stock should I buy?
One that caught my eye today is Raytheon ( NYSE: RTX ). As you can see the recent price action is consolidating right now around a cluster of moving averages. Now, Ideally, I would like these moving averages to be just a touch tighter, a touch closer together because price is just kind of chopping around these moving averages. But I, definitely, think this is a stock that you want to keep on a watch list just in case.
If I bring out my trendline here I can draw a pretty nice downward sloping trendline from the high back here in April. And if I do this we have a little bit of a triangle pattern. You can see how the buyers are kind of coming in near the lows, but the sellers are coming in near the highs, so we have a tightening pattern here on RTX ( NYSE: RTX ).
What I want to see from RTX ( NYSE: RTX ) is a move above 95.10, coming on higher than average volume. I want it to get above, stay above, and do it on volume. So I am going to set an alert right on this downward sloping trendline for about a month, just in case, just as a precaution, so I don’t lose track of this stock. So I think it is worth adding to your watch list.
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