Lockheed Martin  (LMT) - Get Report shares on Thursday rose 2.6% and broke out over resistance to highs. 

It’s as if someone knew what was coming, because on Friday the shares erupted 3.6% as U.S.-Iran tensions escalated significantly.

So far on Monday, the bulls aren't quite getting the follow-through they were hoping for. 

The S&P 500 and Nasdaq have both rallied off the lows to slight gains, while defense stocks like Raytheon  (RTN) - Get Report and Lockheed Martin opened higher but have since given up their gains and turned lower on the day.

LMT stock at last check had slipped back 1.1%. 

That’s not a bullish development, but given that the stocks just hit new highs, it’s clear the bears aren’t in control either. Let’s look at the chart for Lockheed Martin stock. 

Trading Lockheed Martin Stock

Daily chart of Lockheed Martin.

Daily chart of Lockheed Martin.

In April, Lockheed Martin shares gapped higher, setting the tone for the next eight months of trading. That means that since that gap up, traders and investors have continued to buy the dips along uptrend support (blue line).

In September, the bulls saw new resistance between $390 and $395, which persisted for several months. This allowed an ascending triangle to form, where uptrend support squeezes the stock price against a static level of resistance.

Traders expect a bullish outcome with this setup, as they look for a breakout over resistance. 

Lockheed Martin stock delivered on the breakout front, as its shares broke out over $395 and raced to $418. Remember, this setup has been months in the making, and while the move came on the Iran news, it’s not the sole reason LMT is rallying.

Should Lockheed Martin shares begin a larger pullback, it’s vital that former resistance acts as current support. This means that the $395 level needs to buoy Lockheed Martin shares. It would be beneficial if the 20-day moving average is met as support as well.

Below $395 will be a negative development for the bulls and will put up-trend support and the 50-day moving average in play. On the upside, see if Lockheed shares can take out the $418 high.

Easing tension between the U.S. and Iran may weigh on the share price, but at least the technicals are backing up the bulls in this case. That said, an escalation likely sends shares higher again.

Above the 20-day moving average at $395, and it’s hard to be too bearish. Below is another story.