Boeing Co (NYSE: BA) had been in a recovery mode from December 20th until Wednesday, when it hit resistance slightly below 220.00. Then, it pulled back. Overall, the stock remains below the downside line taken from the high of March 15th, and thus, we would consider the medium-term outlook to still be negative, despite the latest rebound.
In order to start examining the case of further declines though, we would like to see a clear dip below the 200.00 round figure, marked by the low of December 31st. This could pave the way towards the low of December 1st, at 188.00, the break of which could extend the fall towards the 174.44 barrier, defined as a support by the inside swing high of October 6th, 2020. If there are no buyers to be found there either, then we may experience declines towards the 159.00 territory, marked by the low of October 30th.
Looking at our short-term oscillators, we see that the RSI, although above 50, turned down again, while the MACD remains above both its zero and trigger lines. Both indicators detect upside speed, but the fact that the RSI turned down suggests that the momentum is slowing down. In any case, the still positive momentum adds credence to our view of waiting for a dip below 200.00.
The move that could make us confident on the upside again is break above 234.00. This would not only confirm the break above the downside resistance line taken from the high of March 15th, but also a forthcoming higher high on the daily chart. Market participants could initially target the high of August 12th, at 241.00, the break of which could pave the way towards the high of June 25th, at 252.30, or the peak of April 5th, at 260.00. If market participants are not willing to stop there, then we could see them climbing towards the high of March 15th, at 279.00.
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