A rare ‘quadruple top breakout’ points to even more gains for this defense giant
Aerospace and defense stocks have experienced strong gains through the course of 2025. While shares of L3Harris Technologies (LHX) have demonstrated positive momentum over the past four months, a recent breakout suggests further upside potential for this defense giant. The daily chart of LHX turned quite bullish in mid-May when the price pushed above $220. This breakout propelled the stock above the 200-day moving average as well as key resistance from the January, March, and April highs. Note how the RSI became overbought on that breakout, confirming strong upside momentum during this uptrend phase. We also observed a series of secondary breakouts in June and July, where a brief consolidation was followed by another push to a new swing high. Most recently, LHX has been stuck in a consolidation range between $267 and $280. A breakout earlier in September signaled a new uptrend for L3Harris, followed this week by yet another new all-time high. While traditional bar charts can be valuable in analyzing changing technical conditions, point and figure charts were created as a way of filtering out the noise and focusing on the signal. By charting uptrends and downtrends in alternating columns, we can determine where a stock may be headed based on the primary trend as reflected in this classic charting style. The point and figure chart for LHX shows how this most recent breakout in earlier September provided a clear bullish signal. We can see that this latest breakout cleared a level matched by the three previous bullish columns, noted with X’s on the point & figure chart. This rare “quadruple top breakout” pattern confirmed that this aerospace leader had entered a new bullish phase with plenty of potential upside. So far we’ve been discussing the recent breakout above the summer highs, but the monthly chart shows that the price action in recent months has actually been part of a much more significant bullish technical configuration. Now we can see that the upswing in July pushed LHX above a major resistance level around $260, signaling an exit from a larger consolidation phase going back to the beginning of 2022. In a market environment where growth stocks have felt overextended, it’s refreshing to find new breakouts that represent stocks earlier in their uptrend phase. And if we’ve learned one thing from years studying charts like L3Harris Technologies, it’s that strength often leads to further strength! – David Keller, CMT marketmisbehavior.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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