Technicals: Raytheon traded in a $7 channel (purple) between June 2012 and a breakout in late April this year. It never convincingly crossed the ML of the ensuing fork, and dropped out, gapping across the first warning line earlier this month. The collapse can be analysed as two ABCDs (green & grey ABCs visible on right), whose entry points (at 25% of the projected retracements) near-coincide with the third lower warning line around $75.
Aggressive trade: short $75.25 (entry point of smaller ABCD) stop: $76.26, targets:
1 $72.24 RRR 3.1
2 $70.33 RRR 5.1
3 $68.90 RRR 6.6
(based on the two ABCDs and the last obvious horizontal resistance, respectively.)
Less aggressive: wait until price clears the larger ABCD's 25% entry (74.78) or the smaller ABCD's CD midpoint (74.23).
DISCLOSURE: I'm just making all this stuff up. Feedback welcome. Good luck! :)
Aggressive trade: short $75.25 (entry point of smaller ABCD) stop: $76.26, targets:
1 $72.24 RRR 3.1
2 $70.33 RRR 5.1
3 $68.90 RRR 6.6
(based on the two ABCDs and the last obvious horizontal resistance, respectively.)
Less aggressive: wait until price clears the larger ABCD's 25% entry (74.78) or the smaller ABCD's CD midpoint (74.23).
DISCLOSURE: I'm just making all this stuff up. Feedback welcome. Good luck! :)