Defense Stocks' Charts Look Vulnerable
The sequestration threat is having a corrosive effect on the technical condition of the defense-sector stocks. Long-term trends are in jeopardy, and at least one stock in the sector is setting up as a potential short trade.
The weekly chart of Lockheed Martin (LMT) shows the stock price breaking out to a 52-week high in late 2011 as the 50-day moving average crossed above the 200-day average and the money-flow indicator moved into positive territory. Despite the pullback in April and May of last year, the 200-day moving average held and supported the second leg of the rally....306 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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