Raytheon Technologies Corporation (RTX) reported a better-than-expected earnings per share on July 28. The stock fell as low as $55.73 on Aug. 3, and then jumped to $66.15 on Aug. 11.
Raytheon Technologies is the second largest aerospace and defense contractor. It is the combination of United Technologies and Raytheon. The new company is a component of the Dow Jones Industrial average and does not include Otis Elevator and Carrier Corporation, which were owned by United Technologies, but were separated in the first half of the year 2020.
The action has ended on Wednesday, August. 12, to $64.29, down 27.2% year-to-date and in a bear market territory to 31.2% below its Feb. 11 of $93.44. Raytheon Technologies is also in the bull market territory at 57.9% above its March 18 low of $40.71. The company is at a reasonable price with a P/E ratio of 10.15 and a dividend yield of 2.95%, according to the trends.
The daily chart for Raytheon Technologies
The daily chart for Raytheon Technologies is the consolidation of a bear market decline of 56% from its February issue. 11 of $93.44 its March 18 low of $40.71. The stock has failed to hold its semi-annual pivot at $84.74 on Feb. 25.
Raytheon Technologies stock has been under a death cross since 23 March, when the 50-day simple moving average (SMA) fell below the 200-day SMA. This has been confirmed after the stock made its low.
On the V at the bottom, the stock has returned to its 50-day SMA, on April 28. After soaking for as little as $51.13 on the 14th of May, the stock has jumped to its 200-day SMA. The stock failed below this key moving average at its June 8 high of $74.93 and then dropped to $55.73 on Aug. 3.
Raytheon Technologies stock is below the required 50-day SMA at $62.89, but is well below its 200-day SMA at $72.85. This aligns with its quarterly risky level at $72.70.
The weekly chart for Raytheon Technologies
The weekly chart for Raytheon Technologies is neutral, above its five-week modified moving average of $61.60. It is below its 200-week SMA, or the return to the average, to $72.87.
The 12 x 3 x 3 weekly slow stochastic reading should decrease to 37.09 this week, down from 40.14 on Aug. 7. Note that, during the week of Jan. 17, this reading was 90.00, put the broth in a “swell parabolic bubble” of the training, and that has led to the 56% decline in the market of the accident.
Trading strategy: Buy Raytheon Technologies stock on the weakness of its five-week modified moving average at $61.60. Reduce the holdings on the strength of its quarterly risky level at $72.70.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each level uses the past nine closes in these time horizons.
The third quarter of 2020 the level has been determined based on the 30 June close, and the level in the month of August has been established according to the July 31 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.