Raytheon Technologies Corporation is an aerospace and defence company that provides advanced systems and services for commercial, military, and government customers worldwide.
It operates in four businesses: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. COVID-19’s long-term impact on air travel remains unpredictable, complicating the investment cases on many stocks, Raytheon Technologies Corporation (NYSE: RTX) could be one of those affected stocks. However, unlike airlines like United Airlines and Delta Airlines, Raytheon offers a downside-protected way to bet on the recovery of air travel, thanks to the military side of its earnings and valuation.
Almost half of Raytheon is from defence segments, and another 10% are from military parts of aerospace segments, so within commercial aerospace, Raytheon Technologies faces less downside from COVID-19.
Raytheon Technologies (RTX) has been formed from the merger of United Technologies (UTX) and Raytheon (RTN), as well as the subsequent spin-offs of Otis Worldwide Corp.
All this great, but what is Raytheon Technologies’ technical analysis and supply and demand analysis is telling us about the underlying stock and what is expected and forecasted? Take a look at Raytheon Technologies’ monthly timeframe basic technical analysis below.
The fear of investors has caused the strong sell-off that happened over the last two months amid the COVID-19 crisis. Technical analysis tells us that there is a lot of room for Raytheon Technologies stock to rally to a monthly supply imbalance of around $87 per share.
There is a long-term buy opportunity on Raytheon Technologies right now. We expect the stock to retrace a bit more before it creates another bullish leg.
For 2020, analysts say COVID-19 will majorly impact RTX’s commercial aerospace businesses but not its defence or military aerospace businesses. This is great because it supports what the supply and demand technical analysis tells us, providing long-term investors with buy opportunities.
This is the kind of price action technical analysis you will learn in our trading community.
You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on Raytheon Technologies. You can find more stock analysis on our day trading community.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name, and it’s called the waiting game.
We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a Raytheon Technologies CFD (contracts for difference) if you are in a country where it’s allowed.
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