A defense stock down big lately is primed for a turnaround. How to play a comeback with less risk

Northrop Grumman (NOC) has suffered an eye-popping 30% collapse in under two months. While a haircut of this magnitude is sure to grab any trader's attention, a massive drop does not automatically guarantee an immediate bounce. Attempting to catch a falling knife is a quick way to drain your account. Finding the actual bottom requires patience and a strict reliance on objective technical indicators to identify the correct entry point. …