We wrote about L3 Technologies (LLL) earlier in the year, and we said, "Prices have consolidated again and a trade up to $162 will be another breakout and give us a potential price target of around $217. It will take a breakdown below $145 to turn the charts bearish."
Prices broke out above $162 in early February and never dipped towards $145. With prices now around $185 our $217 price target is within sight. Let's check the status of the charts now and see if everything is still aligned to the upside.
In this daily bar chart of LLL, below, we can see a sideways consolidation pattern from late February to the end of June. In early July the bulls can back in greater strength to take prices to new highs. LLL is above the rising 50-day moving average line and the rising 200-day line. The On-Balance-Volume (OBV) line moved up and down from March until this month. There seemed to be accumulation underway but it was slow and steady. The recent rise in the OBV line to a new high is encouraging. In the lower panel I am not finding any bearish divergences between the price action and momentum -- a positive for the rally.
In this weekly bar chart of LLL, below, we can see the new high and the strong chart picture with prices above the rising 40-week moving average line. The weekly OBV line is pointed up and the MACD oscillator has turned up to a fresh buy signal above the zero line.
This point and figure chart of LLL, below is pointed up with a nearby price target of $192. $200 and then $217 are also price targets.
Bottom line -- stay long LLL and raise your risk point to a close below $170 and set your sights on $200 and perhaps higher.