Amidst the turbulence of global economic shifts, geopolitical crises and industry challenges, RTX Corporation (NYSE: RTX) emerges as a beacon of resilience and growth in last few quarters. The company, formerly known as Raytheon Technologies, recently released its Q1 2024 earnings report, unveiling a robust performance that surpassed market expectations.

Despite grappling with the repercussions of the GTF engine crisis, RTX managed to deliver impressive results, with sales soaring by 12% and adjusted earnings climbing by 10%. Collins Aerospace, a key segment of RTX, witnessed a 9% revenue surge, propelled by commercial aftermarket and OEM sales, while Pratt & Whitney exhibited a remarkable 23% growth in sales, albeit facing challenges with higher expenses.

Additionally, Raytheon, the defense arm of RTX, experienced a 6% increase in sales, reflecting the company’s diversified portfolio and adaptability in navigating complex market dynamics. With an upward trajectory in sales and earnings, RTX affirms its position as a stalwart in the aerospace and defense sector.

Now, let’s delve into the intricate tapestry of charts and indicators to discern the trajectory of RTX’s stock amidst these compelling developments.

On RTX’s long-term weekly chart, we can see that after collapsing to $40 during the coronavirus crisis, the stock saw a rapid rise that took it beyond $100 by April 2022.

RTX chart by TradingView

However, the stock seems to be stuck in a range since then. After the company announced issues with the GTF engine last year, the stock collapsed to below $70. It has managed to make a recovery since then but is still finding it tough to trade above $100.

For investors and long-term shareholders, as long as the stock doesn’t break above $105.2 and closes above it, it can remain range-bound in the medium term. Hence, buying is advisable only above that level.

In the short-term hourly chart, RTX’s stock is stuck in a very narrow trading range between $99.5 and $102.5, since the start of April. A narrow trading range like this suggests a period of accumulation.

RTX chart by TradingView

The accumulation pattern often leads to a breakout on the upside. So, short-term traders should be looking at buying the stock at current levels with a strict stop loss at $99.46.

For traders, who are bearish on the stock, it is advisable to go short only after the stock breaks below $99.5 while keeping a stop loss at $105.25. If the stock breaks below it, the next support (profit target) can be found at $94.2 and $86.5.

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