Readers can see that RTX Corp. ($RTX) is breaking out on Thursday from a Cup with Handle pattern of bullish reversal. This particular Cup with Handle bears a $204 pivot.
Relative Strength has spiked and the daily MACD has just produced a bullish crossover of the 26-day EMA by the 12-day EMA. Yes, while the histogram of the 9-day EMA moves above the zero-bound.
Target Price: $245
Pivot: $204
Add: As close to pivot as possible
Panic: Loss of 21-day EMA
Note: RTX will likely experience a golden cross either tomorrow or early next week.
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname “Sarge” while serving as an actual sergeant in reserve components of the U.S. Marine Corps, and U.S. Army while simultaneously working on Wall Street.
He self-identifies as a day trader, long-term investor, and anything in between. He believes in removing the emotion out of the decision-making process and trusting the data. Look to Guilfoyle to prepare you for the trading day with his popular early morning Market Recon newsletter on TheStreet Pro, which provides a mix of fundamentals, technical analysis, economic commentary and trading ideas.
