Is The Boeing Company (NYSE:BA) Doomed or Will It Bounce Back?

Is The Boeing Company (NYSE:BA) Doomed or Will It Bounce Back?

Is The Boeing Company (NYSE:BA) Doomed or Will It Bounce Back?

Prima facie Boeing is in deep trouble. But, let’s admit that even after this drubbing, Boeing’s share price is at $375.41 and remains the highest among the Dow components. Moreover, it’s likely to hover near that price since it’s too early to tell whether the airplane itself is to be held responsible for the twin crashes. Investigations are, after all, still in early stages. Let us not forget that maintenance crew do update software on a regular basis, so we can vouch that the software isn’t the culprit behind the crashes.

So, if anyone is to be blamed it maybe the flights crew and the training they received. It’s also worth pointing out that even though the pilot and the copilot had completed the required hours of flight time, did they really receive enough training in a computer simulator. Don’t forget that such training is equally important if not more than the total amount of flight time.

Now, some may say that let the investigation conclude the fate of Boeing. Let me enlighten them that whatever is the result, Boeing isn’t going down and President Trump just simply won’t ground the Boeing 737 MAX airliner. And why so? Simply because there are only a few American companies more valuable than Boeing. And he cannot let anyone meddle with its brand name. It employs almost 150,000 workers, exports several planes around the globe and along with Airbus leads the world market for airliners.

To top it, Boeing makes a hell of a lot of weapons for the U.S. military. And Defense Secretary Patrick Shanahan, who has worked at the top level for almost 30 years at Boeing, is known to be Boeing biased. This means a whole heap of defense contracts may land on Boeing’s feet. Thus, going forward, Boeing’s shares are expected to gain traction as the firm frequently tops the list of government contractors.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 402.25.

The projected lower bound is: 354.46.

The projected closing price is: 378.36.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.5842. This is not an overbought or oversold reading. The last signal was a buy 2 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 32.44. 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 sell 6 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 -182.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 1.730 at 377.140. Volume was 319% above average (trending) and Bollinger Bands were 14% wider than normal.

Open High Low Close Volume___
378.350 381.670 363.390 377.140 4,664,259

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 416.55 386.48 358.56
Volatility: 45 40 37
Volume: 2,127,128 1,161,331 918,511

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.

Summary

BOEING CO is currently 5.2% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of BA.N (mildly bearish). Our trend forecasting oscillators are currently bearish on BA.N and have had this outlook for the last 1 periods.

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