I Think Raytheon (RTX) Is About To Breakout

I think Raytheon (RTX) is about to breakout, so I'm watching this one carefully over the next few days.

Take a look at the chart below. Not only has the company recently double-tapped previous highs resistance points and trended higher to create a new support line, but it's on the verge of creating a new cup-and-handle pattern.

But beyond all this technical BS, lets remember who Raytheon is...

Oh, that's right... only THE defacto missile provider of the United States - military industrial complex up the whazoo!

So what gives? Well, Raytheon recently merged with much of United Technologies thereby inheriting its jet engine manufacturing division. Pratt & Whitney & Collins Aerospace anyone? Not exactly the best time to be making jet engines.

In addition, the company was recently booted out of the Dow Jones, which causes unnecessary selling at fund managers reposition out of the company to reflect the index accordingly.

Posted Using LeoFinance