After reaching its all-time high at 445.35 on March 1st, the Boeing stock (NYSE: BA) had dropped its altitude and broke the short-term upside line, which was supporting the stock’s flight higher. The line was running from the low of December 26th and remained intact up until Monday this week. Yesterday, BA continued to slide, but found good support slightly below the 423.80 hurdle and closed the trading day above it. That area was also seen holding the price from falling lower on February 26th. We will now monitor that level carefully, as it could play a key role in determining the further direction of the stock.
If BA decides to ignore the above-mentioned 423.80 obstacle, we will then aim for lower support zones. The next potential one might be seen near the 413.70 hurdle, which marks the inside swing peak of February 6th. If investors won’t see any value in the stock even at that price, a further move south could bring the share price to the strong support area between the 397.75 and 394.00 levels, where the last one marks the highest point of October.
By looking at our oscillators, we can see that the RSI has moved lower, away from its 80 territory and is still pointing to the downside. The MACD has shifted below its trigger line, after topping in the first two trading days of March and is also now pointing lower.
The alternative scenario here may come into play only if we see the stock breaking back above the 436.25 barrier, marked by the high of February 27th, which could increase the chances for the share price to rise to the all-time high figure, at 445.35. That said, still, in order to get more comfortable with higher areas, we would like to see a break above the 445.35 area, as this would confirm a forthcoming higher high. Such a move would put the stock into an unchartered territory, where initially we would target round numbers like 450.00, 460.00 or 470.00.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.