The Boeing Company (NYSE:BA) Company engineers cleared equipment at center of crash probe

The Boeing Company (NYSE:BA) Company engineers cleared equipment at center of crash probe

The Boeing Company (NYSE:BA) Company engineers cleared equipment at center of crash probe

U.S. federal authorities began exploring a criminal investigation of how Boeing Co.’s 737 Max was certified to fly passengers before the latest crash in Ethiopia involving the new jet, according to people familiar with the probe.

The investigation was prompted by information obtained after a Lion Air 737 Max 8 crashed shortly after takeoff from Jakarta on Oct. 29, said one person, who wasn’t authorized to speak about the investigation and asked not to be named.

The investigation has taken on new urgency after the March 10 crash of an Ethiopian Airlines 737 Max 8 near Addis Ababa that killed 157 people. It is being conducted in part by the Transportation Department’s Inspector General’s office, which conducts both audits and criminal investigations in conjunction with the Justice Department.

Boeing shares fell 1.8 percent percent to $372.28 in New York on Monday.

The Justice Department is now in the process of gathering information about the development of the 737 Max, including through a grand jury subpoena, according to a person familiar with the matter who wasn’t authorized to speak publicly about it. The Justice Department’s Criminal Division, which is overseeing the effort, declined to comment.

The grand jury’s involvement was earlier reported by the Wall Street Journal. Separately, a Seattle Times investigation published Sunday found that U.S. regulators delegated much of the plane’s safety assessment to Boeing and that the company in turn delivered an analysis with crucial flaws.

Both Boeing and the Transportation Department declined to comment about the investigation.

Ethiopia’s transport minister said Sunday that flight-data recorders showed “clear similarities” between the crashes of that plane and Lion Air Flight 610 last October.

A possible criminal investigation during an aircraft accident investigation is highly unusual. While airline accidents have at times raised criminal issues, such as after the 1996 crash of a ValuJet plane in the Florida Everglades, such cases are the exception.

U.S. Federal Aviation Administration employees warned seven years ago that Boeing had too much sway over safety approvals of new aircraft, prompting an investigation by Transportation Department auditors who confirmed the agency hadn’t done enough to “hold Boeing accountable.”

The 2012 investigation also found that discord over Boeing’s treatment had created a “negative work environment” among FAA employees who approve new and modified aircraft designs, with many of them saying they’d faced retaliation for speaking up. Their concerns pre-dated the 737 Max development.

In recent years, the FAA has shifted more authority over the approval of new aircraft to the manufacturer itself, even allowing Boeing to choose many of the personnel who oversee tests and vouch for safety. Just in the past few months, Congress expanded the outsourcing arrangement even further.

In a statement on Sunday, the FAA said its “aircraft certification processes are well established and have consistently produced safe aircraft designs,” adding that the “737 Max certification program followed the FAA’s standard certification process.”

Ethiopian Crash

The Ethiopian Airlines plane crashed minutes after it took off from Addis Ababa. The accident prompted most of the world to ground Boeing’s 737 Max 8 aircraft on safety concerns, coming on the heels of the October crash off the coast of Indonesia that killed 189 people. Much of the attention focused on a flight-control system that can automatically push a plane into a catastrophic nose dive if it malfunctions and pilots don’t react properly.

In one of the most detailed descriptions yet of the relationship between Boeing and the FAA during the 737 Max’s certification, the Seattle Times quoted unnamed engineers who said the planemaker had understated the power of the flight-control software in a System Safety Analysis submitted to the FAA. The newspaper said the analysis also failed to account for how the system could reset itself each time a pilot responded — in essence, gradually ratcheting the horizontal stabilizer into a dive position.

Boeing told the newspaper in a statement that the FAA had reviewed the company’s data and concluded the aircraft “met all certification and regulatory requirements.” The company, which is based in Chicago but designs and builds commercial jets in the Seattle area, said there are “some significant mischaracterizations” in the engineers’ comments.

Boeing Chief Executive Officer Dennis Muilenburg said the company will soon release a software update for the plane and related pilot training to address concerns that emerged after the Lion Air tragedy.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 396.97.

The projected lower bound is: 350.05.

The projected closing price is: 373.51.

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 30 white candles and 20 black candles for a net of 10 white candles.

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 27.3319. This is not an overbought or oversold reading. The last signal was a buy 1 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 32.81. 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 9 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 -95. This is not a topping or bottoming area. The last signal was a buy 1 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 10 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -6.710 at 372.280. Volume was 66% above average (neutral) and Bollinger Bands were 51% wider than normal.

Open High Low Close Volume___
370.000 373.050 367.200 372.280 1,985,664

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

Moving Averages: 10-period 50-period 200-period
Close: 397.68 389.82 358.82
Volatility: 46 39 37
Volume: 2,834,404 1,311,337 958,466

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 3.7% 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 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. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.


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