Northrop Grumman (NOC) stock price entered a downtrend after facing rejection from $462.5 in mid-July 2023. The stock price broke the significant support of $440 and melted to create a support at $422. After the downfall, NOC stock price entered a consolidation zone ranging between $422 to $440.
Northrop Grumman stock has been consolidating in the range since mid-August. If bulls push the price above $440, NOC stock might rise toward the primary psychological resistance level of $450.
On the other hand, if bears push the price below $422, the stock price might fill the lower wick of September 11th and fall toward $410. For NOC stock to retest its annual high and witness decent gains, it must rise above all the significant EMAs.
China Sanctions Northrop Grumman and Lockheed Martin
China will impose sanctions against United States aerospace and defense firms Northrop Grumman and Lockheed Martin for providing weapons to Taiwan, as stated by the foreign ministry of China on September 15, 2023.
Sanctions are being enacted under China’s Anti-Foreign sanction law. Ministry spokesperson Mao Ning also stated: “We urge the U.S. side to effectively abide by the one-China principle… cease U.S.-Taiwan military liaison and stop arming Taiwan, or else it will be subject to a resolute and forceful retaliation by the Chinese side”.
Lockheed Martin’s branch in Missouri is the prime contractor directly involved in selling arms to Taiwan on August 24, 2023. At the same time, Northrop Grumman sold weapons in several transactions.
China has imposed sanctions on U.S. companies over selling weapons numerous times before. The affect is not immediately clear how they work or what they are intended to achieve given that neither company sells to China.
Will NOC Stock Retest $440?
The stock price has climbed above the 20-day exponential moving average, suggesting a bullish momentum rise, but it trades below 50,100 and 200-day EMAs. The relative strength index has surged above the 50 neutral mark and currently stands at 51.40, suggesting increased participation of bulls in the market.
Chaikin money flow score has also witnessed a notable rise since September 11th and stands at -0.02, nearing the 0 mark, implying a rise in strength and capital inflow in the market. The Bollinger bands have contracted, indicating a decrease in volatility. NOC stock price is headed toward the upper band of Bollinger.
Conclusion
The current market scenario is challenging for Northrop Grumman as China is imposing sanctions on the firm. NOC stock price has witnessed strong participation of buyers after touching the $422 level and needs to rise above $440.
Technical Levels
Major support: $422 and $410
Major resistance: $440 and $450
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/18/northrop-grumman-noc-stock-china-sanctions-affect-noc-stock/