Lockheed Martin is a key beneficiary of the ongoing Ukraine war. Best to buy now?

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There are companies that gain in times of war. Lockheed Martin Corporation (NYSE:LMT) is one of them. The military manufacturing giant has been bullish since the year began.

In the last week of February, as the war in Ukraine began, the company emerged as overbought. The signal, however, did not trigger a sell-off, and the share price has remained at the high of about $450.

Lockheed Martin will likely record a surge in the number of orders as countries send military aid to Ukraine. In Europe, there is a reawakening of the importance of military power, and countries will likely boost their capacity. 

The Middle East will also likely increase the demand for military equipment as the oil markets put money into the region. The fundamentals of Lockheed Martin are strong, and they matter most now that the capital markets are seen to be under pressure.

Lockheed Martin at a key resistance level

Source – TradingView

Lockheed is trading at a very significant resistance level of $450. At this point, there are two possible outcomes, one being a breakout to find a new high. A breakout is difficult without major news from the company, especially because the markets are already compromised.

The other possible outcome is a pullback. With the RSI at 70, there is a clear sell signal as the share price is set for a pullback. We project that Lockheed Martin will find support at $385.

Generally, the price will remain above $400 in the coming months. There is a likelihood for the stock to shoot through $450 as the next quarter’s results come out.

Summary

Lockheed Martin, being a military equipment manufacturer, will continue benefiting from the volatility in Ukraine as countries donate military aid. The share price, however, is trading at a key resistance level. The share price will pull back; hence it is a sell at the current price of $444.45.

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