L3Harris Surges 5.16% on Bullish Technical Breakout as Moving Averages and MACD Signal Strong Momentum

L3Harris (LHX) Technical Analysis
L3Harris (LHX) surged 5.16% in the most recent session, closing at $325.74, a sharp reversal from prior weakness. This upward move coincides with a key breakout above a multi-month consolidation range, suggesting renewed bullish momentum. Below is a structured technical evaluation.

Candlestick Theory

The recent bullish candlestick, characterized by a long upper wick and a decisive close near the session high, indicates strong buying pressure. Key support levels emerge at $309.76 (prior low) and $293.57 (December trough), while resistance aligns with the recent high of $336.65. A retest of $325.74 as support could validate this breakout, but a failure to hold above $309.76 may trigger a pullback.

Moving Average Theory

The 50-day and 100-day moving averages (calculated from historical data) are ascending, currently positioned below the 200-day MA, signaling a bullish trend. The 50-day MA crossing above the 200-day MA in late December suggests a "golden cross" pattern, reinforcing medium-term optimism. The current price of $325.74 sits above all three MAs, indicating a strong uptrend, though a close below the 200-day MA (~$280) could invalidate this setup.

MACD & KDJ Indicators

The MACD line has recently crossed above the signal line, forming a bullish crossover, while the histogram shows increasing positive divergence. However, the RSI (calculated using the provided formula) is approaching overbought territory (>70), suggesting potential exhaustion. The KDJ indicator shows a stochastics reading near 80, aligning with overbought conditions. While these indicators concur on short-term strength, divergences between MACD and price action (e.g., declining volume) may foreshadow a reversal.

Bollinger Bands

Volatility has expanded sharply, with the recent price surge pushing LHX to the upper Bollinger Band. This "breakout" pattern suggests continued momentum, but a pullback toward the 20-day MA (~$305) could test the sustainability of the rally. Band contraction observed in late December preceded this move, validating the breakout.

Volume-Price Relationship

Trading volume spiked to 3.54 million shares during the 5.16% rally, confirming the move’s legitimacy. However, volume has remained elevated for several sessions, raising concerns about speculative positioning. A decline in volume during follow-through rallies may signal weakening conviction, suggesting caution for further upside.

Relative Strength Index (RSI)

The RSI has surged to ~72, nearing overbought levels. While this does not guarantee a reversal, it highlights a risk of a pullback to the 40–50 range. Historical data shows the RSI frequently dipping below 30 during corrections, suggesting oversold conditions may emerge if the uptrend falters.

Fibonacci Retracement

Applying Fibonacci levels to the December 2025 low ($293.57) and the recent high ($336.65) reveals key retracement levels at $317.50 (38.2%), $308.50 (61.8%), and $299.50 (78.6%). The current price of $325.74 sits above the 38.2% level, suggesting a potential target at $336.65. A failure to hold above $317.50 may trigger a retest of the 61.8% level.