Analysis: LMT

One of our favorite groups to follow as been defense names. Of the many high quality companies in this group we would have to say Lockheed Martin ( LMT) stands tall.
This jet fighter company is trading in a spot where buyers have come in and stepped up in the past. Just recently we see this happen, in July, as the stock fell toward $360, the big buyers came in and bought stock.
All-time highs are further away, around $480 or so, plenty of room to go upward. While the more recent action is bearish, we see this as a great opportunity to add shares on the downside. Technically oversold here, we see the $370-$380 level as strong support, so adding a bit here today is a strategic move.
The chart, below, can be seen in greater detail here
Relative strength is down (with the rest of the market), while the stochastic momentum (bottom pane on the chart) is approaching levels of a bottom. Money flow is decent here, while volume trends were bearish in early September, they have cooled down. Look for more upside here in this name over the coming months.

AAP is long LMT.