Northrop Grumman Could Break Out
Northrop Grumman (NOC) could be in the early stage of a healthy breakout. The stock is trading 1.5% higher in the early going today and retesting its February highs. While straddling both sides of its flattening 200-day moving average, NOC has spent the entire month in a very tight range. Over the last week, the shares have begun to move some distance away this key level; at the same time, the stock's 50-day has come into play. This is very positive set-up for the stock and it is providing the shares with healthy support for a new leg higher.
NOC reached its post August lows, which also included the September/October bottom, in mid-January. The powerful move off the $50.00 area was rather choppy in the early stage but since the Thanksgiving week lows the march higher has been steady. By the middle of last month NOC had risen 22% off its multi-month lows and was beginning to shows signs of waning momentum. The rally ended with an ugly downside reversal day on Jan. 23. Since then, NOC has traded in a tight range while digesting the damage....264 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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