US defense stocks set to benefit from Middle East geopolitical tensions LMT LHX

Lockheed Martin Corp (LMT) – Fresh all-time high, further potential upside ahead

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LMT has staged a bullish breakout on last Fri, 03 Jan 2019 from a 3-month range configuration in place since 17 Sep 2019. Medium-term upside momentum remains intact as seen by the weekly & daily RSI oscillators.
Relative strength analysis from its ratio (LMT/SPY) suggest outperformance of LMT against the S&P 500.
Bullish bias in any dips above 393.90 for a further potential push up to target the next resistances at 461.10/465.90 and 484.30. On the other hand, a break with a daily close below 393.90 invalidates the bullish breakout for a choppy slide towards the next support at 359.15 (former swing high areas of 02 Feb/24 Apr 2018).

L3Harris Technologies Inc (LHX) – Eyeing a potential break above 271.31 current all-time high

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Last Fri, 03 Jan 2019, the share price of LHX has staged a gapped up above the intermediate swing highs areas of 23/24 Dec 2018 and rallied by 3.70%.
Elements are bullish with its price action that has continued to evolve within a major ascending channel in place since 26 Dec 2018. The upper boundary of the ascending channel stands at 248.30 which also confluences with the 0.618 Fibonacci expansion of the up move from 26 Dec 2018 low to 06 Sep 2019 high projected from 05 Nov 2019 low.
Medium-term upside momentum of price action has resurfaced as indicated by the bullish breakout seen in the daily RSI oscillator from a corresponding significant descending resistance after a prior bullish divergence signal.
Relative strength analysis from its ratio (LHX / SPY) has indicated that LHX has started to show outperformance against the S&P 500.
Bullish bias in any dips above 192.10 medium-term pivotal support for a further potential push up to retest 217.31 current all-time high before targeting the next resistance at 248.30. On the other hand, a break with a daily close below 192.10 negates the bullish tone for a slide towards the next support at 170.55 (former swing range resistance from 24 Apr/16 Oct 2018).

Charts are from eSignal

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