With Donald Trump winning the election, I’ve got my eyes on the defense sector this week.

Bryan and I have been watching one of our favorite defense companies in The War Room, and right now I believe it’s hitting a key support level.

The company is Raytheon Technologies (RTX).

Raytheon is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitalization

As you’ll see in the chart above, RTX took off leading up to the election. It’s since dipped back to right around the $122 level.

I think $118 is a strong support base for this company, and with the perception that Republican leadership will likely boost military spending, I believe RTX has room to push higher off that support.

While nobody knows exactly what Trump will do with the defense budget, there’s some strong belief he’ll continue his use of technology-based weapons.

Trump favors tech weapons over boots on the ground, and during his last presidency he greatly increased the use of drones and unmanned aircraft to attack terrorist leaders.

In fact, he launched 238 drone attacks in his first two years in office, while Barack Obama launched 186.

RTX makes several drone models, including the Coyote and KuRFS systems.

But remember, this potential trade is based on the perception that Republicans will increase defense spending. So make sure to position size accordingly.

Action Plan: Perception trades offer potential for lucrative winners, and Trump’s latest victory is showing potential for more spending in the defense sector – particularly tech-based weapons.

RTX is one of our favorite defense stocks, and right now it’s pulling back which means we’re looking for the right time to get in.

To see exactly how we’re playing all our post-election trade ideas, click here to join The War Room.