- Summary:
- The BAE Systems share price could be preparing a new attempt at posting record highs after recent deals in Switzerland and the US.
The BAE Systems share price is up 1.82% this Thursday as the company continues to ride the wave of increased defence spending by the UK and European countries in response to the conflict in Ukraine.
The recent bullish triggers for the BAE Systems share price come from Switzerland and the US. Last Friday, BAE Systems announced that the Swiss government had shortlisted its ARCHER 155m mobile howitzer artillery system for future use. The artillery system is said to be in the final round of the procurement bidding process, as the Swiss Federal Office for Defence Procurement aims to select the candidate for the production of its new artillery systems.
This week, it has also emerged that BAE Systems won a $38 million contract to provide guidance systems for Lockheed Martin’s Long Range Anti-Ship Missile Program. The system to be put in place by the company will increase the long-range accuracy of Lockheed’s anti-ship missiles. In addition, the company recently showed off its new combat vehicle to be used by the US Marine Corps. The new amphibious combat vehicle (ACV) will come equipped with a lightweight, medium-calibre turret system and an extra armour package.
For investors bullish on the BAE Systems share price, these could be exciting times as the stock makes a renewed bid to push into
record territory.
BAE Systems Share Price Outlook
The initial break of the ascending triangle stalled at the 800.0 psychological price level before correcting. Then, the correction bounced off the triangle’s lower border, enabling a renewal of the attempt at breaking the upper edge at 776.8. A successful break targets 800.00 initially before the 826.0 price mark becomes an additional target to the north. This is where the double bottom within the triangle is expected to find completion for its measured move. Above this level, the measured move from the triangle’s break could find completion at 871.0.
Conversely, rejection at the triangle’s upper border and a pullback that breaks down the triangle’s lower border invalidate the pattern. In this scenario, the 11 April/20 May 2022 lows at 743.0 becomes the new target to the south. Additional support levels are seen at 727.2 (26 April/12 May lows) and at 696.8, where the 16 March/29 March 2022 lows are located.
