Raytheon Technologies Corporation (RTX) reported better-than-expected 澳洲幸运5官方开奖结果体彩网:earnings per share on Jul🌺y 28. The stock dropped to as low as $55.73 on Aug. 3 and then popped to $66.15 on Aug. 11.

Raytheon Technologies is the second largest aerospace and defense contractor. It's the combination of United Technologies and Raytheon. The new company is a component of the 澳洲幸运5官方开奖结果体彩网:Dow Jones Industrial Average and does not include Otis Elevator and Carrier Corporation, which were owned by United ♈Technologies but were separated in the first🐠 half of 2020.

The stock closed Wednesday, Aug. 12, at $64.29, down 27.2% year to date and in bear market territory at 31.2% below its Feb. 11 high of $93.44. Raytheon Technologies is also in bull market territory at 57.9% above its March 18 low of $40.71. The company is reasonably priced with a 澳洲幸运5官方开奖结果体彩网:P/E ratio of 10.15 and a 澳洲幸运5官方开奖结果体彩网:dividend yield of 2.95%, according to Macrotrends.

The daily chart for Raytheon Technologies

The d🦄aily chart for Raytheon Tech🦂nologies is consolidating a bear market decline of 56% from its Feb. 11 high of $93.44 to its March 18 low of $40.71. The stock failed to hold its semiannual pivot at $84.74 on Feb. 25.

Raytheon Technologies stock has been below a 澳洲幸运5官方开奖结果体彩网:death cross since March 23, when the 50-day 澳洲幸运5官方开奖结果体彩网:simple moving average (SMA) fell below the 20♋0-day SMA. This was 🐓confirmed after the stock set its low.

On the V-shaped bottom, the stock returned to its 50-day SMA on April 28. After dipping as low as $51.13 on May 14, the stock popped toward its 200-day SMA. The stock failed below this key moving average at its 🅰June 8 high of $74.93 and then dipped to $55.73 on Aug. 3.

Raytheon Technologies stock is below is holding its 50-day SMA at $62.89 but is well below its 200-day SMA at $72.85. This lines up w🐼ith its quarterly risky level at $72.70.

The weekly chart for Raytheon Technologies

The weekly chart for Raytheon Technologies is neutral, with the stock above its five-week modified moving average of $61.60. It's below its 200-week SMA, or 澳洲幸运5官方开奖结果体彩网:reversion to the mean, at $72.87.

The 12 x 3 x 3 weekly slow 澳洲幸运5官方开奖结果体彩网:stochastic reading is projected to decline to 🌠37.09 this week, down from 40.14 on Aug. 7. Note that, dur🥀ing the week of Jan. 17, this reading was 90.00, putting the stock in an "inflating parabolic bubble" formation, and that led to the 56% bear market crash.

Trading strategy: Buy Raytheon ♔Technologies stock on weakness to its five-week modified moving average at $61.60. Reduce🔜 holdings on strength to its quarterly risky level at $72.70. 

How to use my value levels and risky levels: The stock's closing price on Dec. 31, 2019, was an input to my proprietary analytics. Semiannual and annual levels remain on the charts. Each level uses the last nine closes in these time horizons.

The third quarter 2020 level was established based upon the June 30 close, and the monthly level for Auဣgust was established based upon the July 3🌼1 close. New weekly levels are calculated after the end of each week, while new quarterly levels occur at the end of each quarter. Semiannual levels are updated at mid-year, and annual levels are in play all year long.

My theory is that nine years of 澳洲幸运5官方开奖结果体彩网:volatility between clos🐭es are enough to assume that all possible bullish or bearish events for the stock are factored in. To capture share price volatility, inv🅷estors should buy shares on weakness to a value level and reduce holdings on strength to a risky level. A pivot is a value level or risky level that was violated within its time horizon. Pivots act as magnets that have a high probability of being tested again before their time horizon expires.

How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon 澳洲幸运5官方开奖结果体彩网:backtesting many methods of reading share-price momentum with the objective of finding the combination that resulted in the fewest false signals. I did this following t🉐he stock market crash of 1987, so I have been happy with the results🍌 for more than 30 years.

The stochastic reading covers the last 12 weeks of highs, lows, and closes for the stock. There is a raw calculation of the differences between the highest high and lowest low versus the closes. These levels are modified to a fast𒐪 reading and a slow reading, and I found that the slow reading worked the best.

The stochastic reading scales between 00.00 and 100.00, with readings above 80.00 considered 澳洲幸运5官方开奖结果体彩网:overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an "inflating parabolic bubble" formation🍨, which is typically followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered "too cheap to ignorꦰe," which is typically followed by a gain of 10% to 20% over the next three to five months.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.