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Sunday, June 20, 2021

The Boeing Company (NYSE:BA) 737 Max project flawed

The Boeing Company (NYSE:BA) 737 Max project flawed

One of the engineers who helped design the aircraft involved in two fatal crashes has told the BBC: “My family won’t fly on a 737 Max.”

Adam Dickson worked at Boeing for more than 30 years and led a team of engineers working on the 737 Max. He told the Panorama programme that production of the aircraft was not adequately funded.

The latest variant of the highly successful Boeing twin-jet is currently grounded worldwide after two fatal crashes killed a total of 346 people.

Mr Dickson told Panorama: “Certainly what I saw was a lack of sufficient resources to do the job in its entirety.

“The culture was very cost centred, incredibly pressurised. Engineers were given targets to get certain amount of cost out of the aeroplane.”

He also said engineers were under pressure to downplay new features on the 737 Max.

“The goal was to show that those differences were so similar to the previous design that it would not require a major design classification in the certification process.

“There was a lot of interest and pressure on the certification and analysis engineers in particular, to look at any changes to the Max as minor changes.”

One fundamental change was the introduction of an anti-stall system known as MCAS. It is software designed to intervene when a potentially dangerous “angle of attack” between the airflow and the wing is detected.

But in both Boeing 737 Max tragedies – the Lion Air accident in October 2018 and the Ethiopian Airlines crash in March 2019 – pilots struggled vainly to save the plane as MCAS tilted the aircraft nose down in response to a faulty sensor.

“It’s frightening to see such a major incident because of a system that didn’t function properly or accurately,” said Mr Dickson.

A Boeing 737 pilot, Chris Brady, told Panorama: “If you’re going to design and certify an airliner with such a complicated obscure failure mode as happened to that crew, it’s no wonder that your average crew aren’t able to deal with it.”

Boeing insists the 737 Max programme involved “the same level of scrutiny and engineering assessment” as an all-new aircraft.

“Sometimes, changes in airline or passenger requirements, aviation and environmental regulations, and advances in technology warrant the creation of an all-new airplane.

”But frequently, the best course of action is to update an existing airplane model. This allows for technological advances and innovation to be utilised earlier.

“Airplane derivatives undergo the same rigorous, gated development process … as ‘all-new’ programmes.

“Each change is subject to robust discussion, analysis and testing. In the case of the 737 Max, years of work and testing went into the changes that were made on the aircraft.”

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 358.52.

The projected lower bound is: 321.36.

The projected closing price is: 339.94.


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 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 5.6556. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 37.15. 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 52 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 -155.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 2 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -4.790 at 340.210. Volume was 26% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
344.990 346.080 339.111 340.210 677,232
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 361.20 357.37 363.42
Volatility: 44 33 40
Volume: 935,018 783,508 1,050,044

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 6.4% below its 200-period moving average and is in an downward trend. Volatility is high 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 1 periods.

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