NORTHROP GRUMMAN CORP (NYSE:NOC) showing some interesting technicals. Here's why.

Our stock screener has flagged NORTHROP GRUMMAN CORP (NYSE:NOC) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:NOC for potential movement.

Insights from Technical Analysis

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall NOC gets a technical rating of 9 out of 10. Both in the recent history as in the last year, NOC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• NOC is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so NOC slightly outperforms the market at the moment.
• In the last month NOC has a been trading in the 472.96 - 538.68 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that NOC is one of the better performing stocks in the market, outperforming 88% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• NOC is an average performer in the Aerospace & Defense industry, it outperforms 68% of 64 stocks in the same industry.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Our latest full technical report of NOC contains the most current technical analsysis.

How do we evaluate the setup for NOC?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NOC is 8:

Besides having an excellent technical rating, NOC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 536.75. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 495.68, a Stop Loss order could be placed below this zone.

Trading breakout setups.

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.