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

Lockheed Martin Corp (NYSE: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 (NYSE:RTX) and Northrop Grumman Corp's (NYSE: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 (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN), and Microsoft Corp (NASDAQ: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 (NYSE: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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