SUMMARY
IF I was a Raytheon (RTN) shareholder, I would exercise caution given the chart below. For years, RTN generarated sideways action WXYXZ sequence and pretty much went up and down in cycles. Then price just shot up. When labeling the waves, it becomes clear how extended wave 5 has become. It is well past the 2x in length of wave 3 and that's scary. Why? It's not sustainable.
The extended 5th often signals a very deep retracement potential and that decline often targets the prior wave 2. I've labeled the ABC correction as shown below and it reaches towards the wave 2 price zone. The MACD is VERY overbought on a weekly basis. Eventhough price could rise to higher highs for the year, is it the most ideal time to be taking BUYING or SELLING actions?
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
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