RTX has pulled back to a historically bullish trendline
Defense stock RTX Corp (NYSE:RTX), formerly known as Raytheon Technologies, is up 1.1% at $117.81 today, looking to snap a three-day losing streak after closing five of the last six days in the red. Per a New York Stock Exchange (NYSE) report, RTX has underperformed in comparison to its peers over the past three months. There is reason to believe the shares are due for a short-term rebound, however.
The 2.7% quarterly downturn has RTX testing its 126-day moving average. Per Schaeffer’s Senior Quantitative Analyst Rocky White, the stock has run into this trendline four times in the last three years. For the purpose of this study, White defines that as the equity trading above the moving average 80% of the time over the past two months and closing north of the trendline in eight of the last 10 sessions before coming within striking distance of it.
RTX finished higher one month later after 100% of these signals, averaging a gain of 5.2%. From its current perch, a similar move would put RTX stock at $123.93, back within striking distance of its Oct. 22 record high of $128.70.
Considering the stock is still up 40% in 2024, and 15 of the 22 analysts in coverage carry a “hold” or worse rating on the stock, any upgrades could also fuel a rebound. Plus, analysts’ 12-month consensus price target of $131.71 is just a bit above its October peak.