Raytheon

Last up is defense contractor Raytheon ( RTN), a stock that's looking "toppy" right now.

>>3 Hot Stocks to Trade (or Not)

Raytheon is currently forming a double-top pattern, a setup that's formed by two swing highs that hit their heads at approximately the same price level. The sell signal comes on a breakdown below the near-term support level for shares, which is right at $65. Shares are sitting just above that price level this morning. If you own RTN right now, consider a crack below $65 to be your sell signal.

Raytheon practically went parabolic in late April, so it's not a huge surprise that this stock is looking primed to correct harder than the rest of the market. Once saving grace for this stock is the fact that the relatively short pattern height in RTN gives it a less painful downside target at $62. If you're looking to enter a long in this stock, that's where I'd look to be a buyer again.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

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