Northrop Grumman (NOC) is flying higher this Friday and is technically poised to breakout to a new high.
In this daily bar chart of NOC, below, we can see that prices have gapped higher today and are pushing up into the highs of September. A strong close above the $380 area should launch a move to higher highs. Prices are above the still declining 50-day moving average line and above the rising 200-day line.
The volume histogram shows that trading volume has been heavier since September and the On-Balance-Volume (OBV) line shows a rise to a new high from early November to now. A new high in the OBV line is probably foreshadowing a new price high on NOC.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line now for an outright buy signal after cover shorts buy signals in November and December.
In this weekly bar chart of NOC, below, is not yet updated with today's price action. NOC is above the rising 40-week moving average line and trading towards the September highs.
The OBV line turned upwards in December to tell us that buyers were becoming more aggressive, and the MACD oscillator narrowed towards an eventual crossover and buy signal.
In this Point and Figure chart of NOC, below, we can see that the software is projecting a possible upside price target in the $440 area.
Bottom line strategy: If NOC can close above its September high it should open the way to gains to the $440 area in the months ahead. Traders could buy a small position here and add on strength. Risk a close below today's low.
