Boeing Co (NYSE: BA) traded lower recently, after hitting resistance at 234.00 on November 15th. That said, the slide was stopped near the key support zone of 205.00, below which the last time we saw the stock trading was back in the beginning of February. The stock is also trading below a downside resistance line drawn from the high of March 15th, but in order to start examining the bearish case, we would like to see a clear break below 205.00.
Such a break would confirm a forthcoming lower low on the daily chart and may initially target the 191.80 zone, marked by the low of January 27th. A break lower, could extend the fall towards the 176.00 territory, marked by the inside swing high of October 6th, 2020. If that zone is not able to halt the slide either, then we may experience declines towards the 159.00 hurdle, marked by the high of November 6th, 2020.
Looking at our daily oscillators, we see that the RSI fell below 50, while the MACD lies below both its zero and trigger lines, pointing down. Both indicators detect negative momentum, supporting the case for further declines, but the fact that the RSI has turned somewhat up recently suggests that a small bounce may be looming before the next leg south and a potential dip below 205.00.
However, in order to start examining the case of decent advances, we would like to see a break above 241.00, which is the high of August 12th. The stock will already be above the aforementioned downside line and we could see it traveling towards the 252.30 or 260.00 zones, marked by the highs of June 25th and April 5th, respectively. If investors are not willing to stop there, we could see them climbing towards the peak of March 15th, at 279.00.
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