L3Harris Technologies (LHX) has moved up strongly in the past two days pushing it closer to an important upside breakout. Let's review a set of our favorite charts to see how we should trade LHX in the week's ahead.
In this daily bar chart of LHX, below, we can see that prices corrected to the downside from September into early December. Weakness in early December approached the rising 200-day moving average line and that was in hindsight a buying opportunity.
LHX is above the bottoming 50-day moving average line.
The daily On-Balance-Volume (OBV) line started to turn higher from early November telling us that buyers of LHX had turned more aggressive. The OBV line is not all that far from making a new high for the move up.
The Moving Average Convergence Divergence (MACD) oscillator has been improving since late October and is now crossing above the zero line for an outright go long signal.
In this weekly bar chart of LHX, below, we can see that prices have more than doubled in the past three years. LHX dipped to the rising 40-week moving average line in November and December in what turned out to be a buying opportunity.
The weekly OBV line has been steady since June and signals that buyers of LHX have been buying even when prices declined.
The weekly MACD oscillator is above the zero line in bullish territory and narrowing towards a future bullish crossover.
In this daily Point and Figure chart of LHX, below, we can see a bullish picture with a $243 price target. A trade at $218.10 will be a new high for the move up and refresh the uptrend.
Bottom line strategy: Traders could trade LHX from the long side on available weakness risking a close back below $200. The $243 area is our first price objective.
