The defense contractor had been unable to break through resistance at the $72 level for several months, as indicated by the chart below. But yesterday LLL spiked higher after reporting earnings and finally traded above that area for the first time since early August 2011, and the stock has held above that level today even as it is down fractionally this afternoon to $73.52.
That is why I believe that LLL still has upside potential, possibly to the $79 area. If it trades south of $70, however, I would look to exit the name.
(Chart courtesy of tradeMONSTER)
