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Raytheon Technologies Corp. Market Update

8/31/2022 3:30 PM

This week, the stocks of the defense company Raytheon Technologies Corp. continue to correct downwards after statements made by the head of the US Fed Jerome Powell on Friday at a symposium in Jackson Hole.

The official announced a further increase in rates and their retention at high levels for a long time. These comments caused investors to fear increased pressure on the American economy and on the stock market. Meanwhile, the position of the company itself looks strong, primarily due to growing global tensions and the increase of global demand for weapons. It should be noted that the administration of President Biden recently announced the allocation of another 3.0B dollars for military supplies to Ukraine, which will provide Raytheon Technologies Corp. with new long-term contracts, some of which are already beginning to be made. So, last week it became known that Raytheon Missiles & Defense division made a deal with the Pentagon in the amount of 182.0M dollars for the supply of NASAMS anti-aircraft missile systems, which will later be transferred to Ukraine. Earlier, a contract was also announced for 972.0M dollars for the production of missiles for AMRAAM fighter aircraft supplied to the USA and 18 other friendly countries.

In general, the prospects for profit growth in the current year are estimated as high, so the current correction of quotations is seen as temporary.

Currently, the price is testing the mark of 90.62 (Murray [2/8]), consolidation below which will give the prospect of further decline to the levels of 89.06 (Murray [1/8]) and 87.50 (Murray [0/8]). The key level for the "bulls" is 93.75 (Murray [4/8]), with consolidation above which further growth to 96.88 (Murray [6/8]), 98.44 (Murray [7/8]) will be possible.

Technical indicators do not give a single signal: the Bollinger Bands are horizontal, the MACD histogram is at the zero line, its volumes are insignificant, and the Stochastic is directed downwards.

Resistance levels: 93.75, 96.88, 98.44. | Support levels: 90.62, 89.06, 87.50.

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