The Boeing Company (NYSE:BA) 737 Max Down For Another Month?

The Boeing Company (NYSE:BA) 737 Max Down For Another Month?

The Boeing Company (NYSE:BA) 737 Max Down For Another Month?

American Airlines cancelled flights related to the Boeing 737 MAX through April 24. That’s roughly 90 American Airlines flights per day. That suggests that the U.S. won’t clear the 737 Max for at least another months.

U.S. air safety regulators tentatively approved Boeing 737 Max software and pilot-training fixes, the Wall Street Journal reported Saturday, citing sources and documents. The fixes would give pilots more control over a less-aggressive automated stall-prevention system. Training would focus on how the system works and how to shut it down.

The FAA may get the Boeing 737 Max operating in U.S. skies in several weeks. Europe and other big aviation authorities could take months to review the changes.

A big Boeing 737 Max order has been cancelled already. More cancellations are likely. New Boeing 737 Max orders will surely dry up for months. Meanwhile, a Boeing criminal probe of the FAA’s approval of the 737 Max is underway. A Senate panel hearing will discus aviation safety oversight Wednesday.

Boeing stock fell 4.4% last week after tumbling 10% in the prior week.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 385.11.

The projected lower bound is: 339.97.

The projected closing price is: 362.54.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

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 28.8476. 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 29.98. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 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 -83. This is not a topping or bottoming area. The last signal was a buy 5 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 14 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -10.530 at 362.170. Volume was 53% above average (neutral) and Bollinger Bands were 74% wider than normal.

Open High Low Close Volume___
368.960 369.850 361.540 362.170 1,892,429

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

Moving Averages: 10-period 50-period 200-period
Close: 376.16 392.72 359.10
Volatility: 48 37 37
Volume: 3,137,718 1,366,119 977,602

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BOEING CO is currently 0.9% 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 8 periods. Our momentum oscillator is currently indicating that BA.N is currently in an oversold condition.

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