The Boeing Company (NYSE:BA) Diverge Further On Expectations For 737 Max Return

The Boeing Company (NYSE:BA) Diverge Further On Expectations For 737 Max Return

The Boeing Company (NYSE:BA) Diverge Further On Expectations For 737 Max Return

American Airlines (AAL) has canceled Boeing 737 Max flights through mid-January, throwing the plane-maker’s timetable about a return to service into doubt. Boeing stock was flat early Wednesday.

The airline previously had canceled flights through early December and now plans to gradually ease the 737 Max into its flight schedule starting Jan. 16. Boeing has said that the 737 Max will return to service early in the fourth quarter, which started this month.

American also expects 737 Max cancellations will lower Q3 pretax income by $140 million, and predicted Q3 unit revenue growth of 1.5%-2.5%.

The biggest airline in the U.S. has the country’s second-biggest fleet of Boeing 737 Max jets with 24. Only Southwest Airlines (LUV) has bigger exposure. The narrow-body jet has been grounded since two deadly crashes linked to an automatic flight-control system.

United Airlines (UAL) had already canceled Boeing 737 Max flights until Dec. 19 and Southwest has canceled flights until Jan. 5.

American anticipates impending software updates to controversial aircraft will lead to recertification later this year, with commercial service resuming January 2020. It said it is “in continuous contact with the Federal Aviation Administration and Department of Transportation” over the matter.

Boeing Stock Edges Higher

Shares closed up 0.2% at 374.96 on the stock market today. The stock has been consolidating for the past 32 weeks, MarketSmith analysis shows. It has inched back above its 50- and 200-day lines. However its relative strength line is barely up for a year, though it has recovered from lows.

Despite recent turbulence, the Dow Jones stock is still up almost 17% so far in 2019. It has a mediocre IBD Composite Rating of 68. The stock checkup tool shows earnings growth is mixed. Earnings have slumped by an average of 93% over the past three quarters, but EPS has swollen by 45% over the past three years. The CAN SLIM minimum benchmark for both metrics is 25%.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 392.30.

The projected lower bound is: 358.72.

The projected closing price is: 375.51.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 23 black candles for a net of 3 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 72.7347. This is not an overbought or oversold reading. The last signal was a buy 3 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 52.32. 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 103 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 -36. This is not a topping or bottoming area. The last signal was a buy 3 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 11 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 0.860 at 374.960. Volume was 38% below average (neutral) and Bollinger Bands were 50% narrower than normal.

Open     High      Low     Close     Volume___
376.000 377.720 373.530 374.960 489,191
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 376.59 359.40 367.55
Volatility: 19 30 36
Volume: 542,043 773,578 986,506

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 2.0% 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 1 periods.

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