The BAE Systems share price retreated slightly on Monday even after the company issued a relatively positive trading statement. The stock is trading at 572p, which is about 4% above the lowest level in October. BAE reaffirms guidance BAE Systems is the biggest defence contractor in the UK. The company has a market capitalization of more than 18 billion pounds, making it bigger than Rolls-Royce Holdings. It manufacturers defence aircrafts, land vehicles like tanks, and sea products like submarines. In a trading statement published on Monday, the company reaffirmed its previous guidance. It expects that its sales will rise by between 3% and 5% this year. This is after the firm\u2019s revenue rose to more than 20.87 billion pounds last year. It expects that its underlying EBIT will rise by between 6% and 8% while its free cash flow will be above 1 billion pounds. In a statement, the company\u2019s CEO said: "Demand for our capabilities remains high and we have a strong pipeline of opportunities across our broad geographic portfolio that will enable our skilled, global workforce to deliver capabilities which will support our customers in responding to the evolving threat environment." BAE Systems share price forecast I wrote about BAE Systems a few months ago. At the time, I predicted that the BAE share price would rebound substantially. This prediction was accurate as the stock rose from 554p to a high of 600p. In the past few weeks, however, the stock has struggled to find direction. It initially dropped to 550p and is currently rebounding. Along the way, the stock has moved above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved close to the overbought level of 70. Therefore, the BAE stock will likely keep rising as bulls target the next key resistance level at 600p. This view will be invalidated if the stock drops below 550p.