The Boeing Company (NYSE:BA) CEO, removed as chairman, nears last chance on 737 Max

The Boeing Company (NYSE:BA) CEO, removed as chairman, nears last chance on 737 Max

The Boeing Company (NYSE:BA) CEO, removed as chairman, nears last chance on 737 Max

The clock is ticking ever more loudly for Boeing Co. Chief Executive Dennis Muilenburg as the grounding of the 737 Max hits the seven-month mark.

The board removed him as chairman Friday after the close of the workweek, saying the change would enable Muilenburg to focus on returning Boeing’s bestselling jet to service. The directors expressed support for Muilenburg but pledged “active oversight” as they handed his chairman’s post to lead director David Calhoun, who has been mentioned in years past as a potential Boeing CEO.

The Friday evening shakeup weakens Muilenburg, 55, as he tries to get the Max back in the air this quarter and prepares for a crucial appearance before Congress on Oct. 30. Boeing’s reputation and finances have been battered since two Max crashes killed 346 people and prompted a global grounding, and U.S. regulators have yet to schedule a crucial test flight needed to recertify the plane.

“If they’re on course for recertification in the fourth quarter as they maintain, then he could hang on,” Richard Aboulafia, an aerospace analyst at Teal Group, said of Muilenburg. “If it slips much beyond then, then his job is definitely at risk.”

Boeing’s third-quarter tally of 63 deliveries, down from 190 a year earlier, was 12 jetliners less than predicted by Cowen & Co. analyst Cai von Rumohr. The shortfall probably pared $900 million from third-quarter revenue and 25 cents to 30 cents a share from estimated earnings, Von Rumohr said in a Tuesday report.

When asked in an interview earlier this month if he was the right person to lead Boeing out of the deepening turmoil, Muilenburg responded: “This is not about me, right? It’s about our company and what we do for our customers.” He then said, “I will serve in this role with everything that I have as long as the board wants me serving in this role.”

Last week’s decision shows the board is willing to give Muilenburg time. Even so, it’s a shot across the bow and a decision it came to reluctantly. Boeing had successfully resisted earlier pressure from shareholder activists to split the roles.

“They wanted to maintain the stability of having him as CEO but they also clearly wanted to send a message of change and introduce a somewhat new approach to leadership,” Aboulafia said. “This really is going to focus attention on the next two months.”

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 390.17.

The projected lower bound is: 357.54.

The projected closing price is: 373.85.

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 26 white candles and 23 black candles for a net of 3 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 45.4169. This is not an overbought or oversold reading. The last signal was a buy 6 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 50.48. 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 106 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 -25. This is not a topping or bottoming area. The last signal was a buy 6 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 -1.740 at 373.180. Volume was 44% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open     High      Low     Close     Volume___
374.250 378.680 372.740 373.180 441,444
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 373.48 361.48 368.52
Volatility: 20 29 35
Volume: 549,660 743,005 980,370

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 1.3% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 4 periods.

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