Lockheed's Global Defense Expansion Drives Gains, While Technicals Hint At Pause

Lockheed Martin Corp LMT shares nudged up by 1.07% on Monday as reports emerged that Taiwan might be loading up on U.S. defense tech, with Lockheed's Aegis destroyer and F-35 fighter jets at the top of the list.

This potential purchase aligns with Taiwan’s move to show its defense commitment amid rising tensions with China, a sentiment that resonates with the U.S.'s call for allies to step up their defense investments.

Taiwan is also looking to buy Patriot missiles from RTX Corp RTX and Northrop Grumman Corp's NOC E-2D Advanced Hawkeye radar systems, underscoring its efforts to bolster self-defense.

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Lockheed Expands Horizons With New AI Defense Partnerships

Beyond traditional defense tech, Lockheed is diving into AI with new partnerships alongside Meta Platforms Inc META, Amazon.com Inc AMZN, and Microsoft Corp MSFT.

Meta recently committed to making its open-source Llama AI models available for defense uses, working with Lockheed and others to integrate AI into national security applications.

This expansion hints at Lockheed's strategic shift toward high-tech defense solutions, aligning with modern security demands.

Eye On Korea: Lockheed's Bid For CH-53K Choppers Deal

On the global front, Lockheed's Sikorsky unit is in the running for a multibillion-dollar contract to supply heavy-lift CH-53K helicopters to South Korea, reported TheKoreaTimes.

This special ops chopper could find a new home in South Korea's military by 2031, though it's up against Boeing Co's BA CH-47F in a closely watched competition.

LMT Stock Chart Signals For Bulls & Bears

Despite the bullish news, the charts show a mixed outlook for LMT stock.

Chart created using Benzinga Pro

Trading at $570.58, LMT stock is above its eight, 20 and 200-day SMAs (simple moving averages), which signal strong support.

However, the 50-day SMA, sitting at $578.05, shows slight selling pressure.

The MACD (moving average convergence/divergence) reading of a negative 8.02 flags a potential downturn, while an RSI (relative strength index) of 51.57 signals a neutral stance, neither overbought nor oversold.

So, while Lockheed Martin has reason to celebrate with defense contracts and high-tech moves, investors might want to watch for potential pullbacks before jumping in.

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