Northrop Grumman Surges 3.94% as Technicals Signal Bullish Continuation

Candlestick Theory
Northrop Grumman exhibits a bullish short-term bias, with the June 13 session closing near its daily high ($516.72) after a 3.94% surge. This forms a two-day bullish continuation pattern following the June 11 hammer candlestick at $488.46, which established critical support near $472. Key resistance is evident at $519.43 (June 13 high), with stronger overhead resistance near the May peak at $531.33. Support resides near $488–$490, reinforced by multiple bounces in early June, with a breakdown level at $472 representing the 2025 swing low.
Moving Average Theory
The 50-day moving average ($492.10) recently crossed above the 100-day MA ($485.30), signaling strengthening intermediate momentum. Both remain below the ascending 200-day MA ($505.80), indicating persistent long-term upward pressure. The June 13 close at $516.72 sits above all three averages, confirming bullish alignment. Continued trading above the 50-day MA suggests near-term strength, though a sustained breach of the 200-day MA would reinforce bullish conviction.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover with the signal line, supported by expanding histogram bars. This coincides with the KDJ indicator (14,3,3) exiting oversold territory—the %K line (42) crossing %D (38) upward after dipping below 30 in late May. While MACD momentum is building, the KDJ’s midpoint position implies room for further upside before overbought conditions emerge.
Bollinger Bands
Bollinger Bands (20-day) widened notably during the June 13 rally, reflecting surging volatility. Price closed near the upper band ($517.80), suggesting near-term overextension. The prior contraction phase between June 5–11 (bands narrowing to 15-point width) resolved with an upside breakout, targeting the $530–$535 zone based on band width projection. A retreat toward the middle band ($502) could offer consolidation support.
Volume-Price Relationship
The June 13 advance occurred on 1.84 million shares—nearly triple the 30-day average volume—validating bullish conviction. This follows above-average volume during the May 30 and June 11 rebounds. Conversely, the April 22 sell-off (-12.66%) recorded extreme volume (4.78 million shares), establishing a distribution anchor. Sustained volume above 1.2 million shares would reinforce recovery credibility, while low-volume pullbacks may signal accumulation.
Relative Strength Index (RSI)
The 14-day RSI (56) has climbed from oversold lows below 30 in late May but remains neutral, avoiding overbought caution. This midpoint positioning, following a double divergence in May (price lower lows vs. RSI higher lows), suggests nascent positive momentum. A move above 60 would strengthen recovery prospects, though overbought (>70) readings would warrant profit-taking vigilance.
Fibonacci Retracement
Applying Fibonacci to the March–April 2025 swing (low: $442.12, high: $531.33), key levels emerge. The 61.8% retracement at $510.25 provided resistance in early June, while the 50% level ($486.73) anchored May–June support. The recent breakout above $510.25 opens a path toward the 23.6% retracement ($519.80). Conclusively exceeding $519.80 would target the prior high of $531.33, with pullbacks toward $486.73–$490 likely attracting renewed demand.