Leidos (LDOS): Cup and Handle

We have some interest in Leidos Holdings (LDOS), which is another stock that is trading within a potential late 2024 into early 2026 bullish cup and handle formation.

LDOS is firmly bullish above support from 189 down to 178 (13- and 26-week moving averages (WMAs) and chart levels), which could mark the handle low. If needed the rising 40-WMA near 172 offers an additional support ahead of the 162 area, which is the neckline of the December 2024 to July 2025 head and shoulders bottom that formed the lower end of the cup within the stock's developing cup and handle formation.

A decisive breakout above 202.90-205.77 (November 2025 and November 2024 peaks) would confirm this bullish setup and suggest a stronger rally to 249-250 (100% extension of the May 2023-November 2024 rally project from the February 2025 low) and then higher toward 282 (cup and handle pattern count).

LDOS is also building a late 2024 into early 2026 bottoming pattern relative to the S&P 500.

Chart 1: Leidos Holdings (LDOS) (top) and relative to the S&P 500 (bottom)