Lockheed Martin Corp. declined from $120.30 (U.S.) in 2008 to $57.41 in 2009 (A-B), had a recovery rally to $87.06 (C) and then settled in a trading range mostly between $68 and $87 for about three years (dashed lines). The stock had a breakout from this area of accumulation and reached a high of $92.24 (D) to signal higher targets. Current levels provide a good entry point (E). Only a sustained decline below $80-$81 would be negative. Point & Figure measurements provide targets of $99 and $109. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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