Current trend

Shares of RTX Corp., an American aerospace and defense conglomerate, are correcting at 120.00.

The aircraft manufacturing division of the company, Pratt & Whitney, together with Air New Zealand announced the start of construction of an engine center in New Zealand designed for maintenance and repair of Pratt & Whitney GTF engines, which will cost 150.0 million dollars. This, experts say, may push stock prices to continue the uptrend, which is now supported by quarterly financial results.

Thus, the company's revenue amounted to 20.1 billion dollars, exceeding 19.00 billion dollars over the same period last year and preliminary estimates of 19.84 billion dollars, and earnings per share (EPS) were at 1.45, also above the forecast of 1.34 dollars and last year's figure of 1.25 dollars. On December 12, dividends of 0.63 dollars per paper will be sent to shareholders, and their indexation is expected after the February payment. At the moment, the yield is 2.07% per quarter, slightly below the average level of last year.

Support and resistance

On the D1 chart, the asset is below the support line of the channel with the boundaries of 129.00–122.00.

Technical indicators hold the global sell signal that was received last week: the alligator indicator expands its range of EMAs fluctuations, while fast EMAS are located below the signal line, while the AO oscillator, being close to the transition level, forms descending bars.

Support levels: 118.00, 110.00.

Resistance levels: 122.30, 129.00.

Trading tips

If the asset continues to decline and the price consolidates below the minimum of 118.00, short positions with a target of 110.00 and a stop-loss of 120.00 will be relevant. Implementation period: 7 days and more.

In case of continued global growth of the asset, as well as price consolidation above the maximum and resistance level of 122.30, one may open short positions with a target of 129.00 and a stop-loss of 120.00.