Stock of the day: Lockheed Martin

What do Lockheed Martin and the DAX have in common? Both are reflecting a market shift as traders begin discounting the end of the war in Ukraine. This shift is evident in Lockheed Martin’s decline and the DAX’s rise.

Lockheed Martin, a defense giant, has seen its price decline steadily from over $600 to around $450, indicating that the market is pricing in lower demand for arms and weapons. Conversely, the DAX, Germany’s primary stock index, continues to climb higher despite the poor state of the German economy. Traders are likely anticipating a resolution to the conflict, potentially reopening access to cheap Russian resources, which would boost the struggling German economy.

From a technical perspective, Lockheed Martin is now testing a critical support level, defined by a long-term black uptrend line. The price’s proximity to this support level suggests that a major move could be on the horizon.

• If the weekly candle closes below the uptrend line, it would confirm a sell signal, signaling a likely continuation of the bearish trend. This scenario appears to be more probable given current momentum.
• Alternatively, a reversal off this support and a weekly close above the yellow resistance would provide a buy signal, though the chances for this outcome are currently limited.