The bullish sentiment for Northrop Grumman (US: NOC) will come to a halt and head into a correction based on the technicals indicated.

1. The stock struggled to break the resistance of 384.37 since its strong rally on 2^nd Jan 2020.
2. Bearish engulfing candle at the resistance 2 periods ago indicate selling pressure.
3. Rising wedge formation indicates a bearish correction ahead.
4. Based on momentum the indicators:
   • Stochastic oscillator is showing an overbought cross of the K and D line;
   • RSI shows a bearish divergence.

*Timeline of the technical call for NOC is between 1-2 weeks.

*The demand level near 340.00-348.92 is a potential rebound zone.

CHART LEGENDS

Stochastic Oscillator

Red line = Overbought Line

Green line = Oversold Line