Current trend

Shares of RTX Corp., an American aerospace and defense conglomerate, are growing within the long-term uptrend: yesterday, the quotes reached their highest values since April 2023 around 103.76 amid the publication of strong financial statements for Q1 2024.

Due to an increase in orders for the production of missile weapons, air defense systems and aircraft engines, the emitter managed to generate revenue of 19.3 billion dollars, which turned out to be higher than forecasts of 18.4 billion dollars and the same indicator last year by 12.0%, while net profit of RTX Corp. amounted to 1.709 billion dollars with preliminary estimates of  1.632 billion dollars, which is 20.0% higher than last year's figure. Adjusted earnings per share (EPS) increased by 10.0% to 1.34 dollars, and the volume of completed orders increased to 202.0 billion dollars. It should be noted that sales increased in all divisions: by 9.0% at Collins Aerospace, by 23.0% at Pratt & Whitne and by 6.0% at Raytheon.

The publication of financial indicators caused a short-term increase in quotes, but it turned out to be moderate, as investors are still concerned about the large costs of RTX Corp. to eliminate technical problems of the Pratt & Whitney series of aircraft engines. This situation led to the fact that management left profit forecasts for the current year at the same levels: sales should amount to 78.0–79.0 billion dollars, EPS of 5.25–5.40 dollars, and free cash flow of about 5.7 billion dollars.

Support and resistance

Technically, the price has consolidated above the 100.00 mark (Murrey level [8/8]), which will allow quotes to develop upward dynamics towards the targets of 106.25 (Murrey level [ 2/8]) and 112.50 (Murrey level [ 2/8], W1). The key level for the bears is 96.88 (Murrey level [7/8], the lower line of the Bollinger bands), with a breakdown of which the decline can continue to 90.62 (Murrey level [5/8]) and 84.38 (Murrey level [4/8]).

Technically, the indicators confirm the continuation of the uptrend: Bollinger Bands and Stochastic are directed upwards, MACD is stable in the positive zone.

Resistance levels: 106.25, 112.50.

Support levels: 96.88, 90.62, 84.38.

Trading tips

Long positions can be opened from the 102.00 mark with targets of 106.25, 112.50 and stop-loss around 99.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 96.88 with targets of 90.62, 84.38 and stop-loss around 100.50.