The 737 Max issues have made The Boeing Company (NYSE:BA) stock less attractive

The 737 Max issues have made The Boeing Company (NYSE:BA) stock less attractive

The 737 Max issues have made The Boeing Company (NYSE:BA) stock less attractive

The advances of commercial airliners are amazing, as they have innovative designs, sophisticated computer systems and unprecedented energy efficiency. But those advances have also led to mind-numbing complexity that pose safety issues, leading to problems for Boeing (NYSE:BA) stock.

Unfortunately, that scenario has unfolded with the 737 Max. At the heart of the issue is the MCAS system that helps the plane avoid stalling. But in rare cases, it appears that it has done the opposite because of faulty sensor data. That could explain two horrific plane crashes, one in Indonesia and another in Ethiopia. Both occurred within about five months of each other. As a result, all 737 Max planes have been grounded.

Despite all this, BA stock has actually held up fairly well. For the year so far, Boeing stock is up close to 17%. But BA stock is off about 14% from the peak it reached in March.

So what can investors expect now from BA stock? Is this a good time to consider Boeing stock? Or should investors hold off on buying the shares? Well, first of all, let’s take a look at some of the pros of BA stock.

The non-cyclical trends affecting Boeing stock remain bright. Based on data from the International Air Transport Association (IATA), the number of global annual airline passengers is projected to double by 2037 to 8.2 billion. The key driver is growth in Asia, driven by robust increases in that continent’s wealth. By the mid-2020s, China is expected to be the world’s largest market for air travel, with India coming in at number 3.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 384.78.

The projected upper bound is: 396.58.

The projected lower bound is: 353.19.

The projected closing price is: 374.88.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.

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 31.4723. This is not an overbought or oversold reading. The last signal was a buy 5 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 46.17. 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 27 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 -93. This is not a topping or bottoming area. The last signal was a sell 17 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -1.000 at 375.800. Volume was 64% below average (consolidating) and Bollinger Bands were 56% narrower than normal.

Open High Low Close Volume___
375.500 377.510 373.270 375.800 448,023

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

Moving Averages: 10-period 50-period 200-period
Close: 377.76 390.03 363.42
Volatility: 16 35 38
Volume: 806,763 1,428,152 1,008,119

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 3.4% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on BA.N and have had this outlook for the last 6 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH