Citi resuming coverage of The Boeing Company (NYSE:BA) as buy
Citi said if the company manages to fix the 737 Max within months Boeing shares could return to $400 or higher.
“A lot has happened since our research restriction went into place in July 2018. Obviously, the near-term narrative is focused on getting the MAX back in the air following two tragedies. We don’t claim to know what happened or what will happen. But we offer context for thinking about various scenarios using our FCF tool which lets you adjust production rates & profitability. Our low probability (5%) downside case suggests a $220 stock. However, our base case is a multiple-month grounding punctuated by a manageable fix; meaning the stock can resume its move into the $400s with a path >$500. There’s likely to be volatility ahead and we doubt the stock can work until it’s clear the MAX will fly again (could take weeks or months). But risk/reward still skews positive.”
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 397.24.
The projected lower bound is: 352.14.
The projected closing price is: 374.69.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 56.3936. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.02. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -46. This is not a topping or bottoming area. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 17 period(s) ago.
Rex Takasugi – TD Profile
BOEING CO closed up 3.830 at 374.210. Volume was 13% above average (neutral) and Bollinger Bands were 63% wider than normal.
Open High Low Close Volume___
372.000 376.650 365.600 374.210 1,424,799
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 372.41 393.91 359.13
Volatility: 29 37 37
Volume: 2,089,894 1,404,898 986,545
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
BOEING CO is currently 4.2% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BA.N and have had this outlook for the last 11 periods.
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