The Boeing Company (NYSE:BA) further downside expected
With Boeing’s (Boeing’s Stock Quote, Chart NYSE:BA) share price in a tailspin, the curious investor might be wondering if now’s the time to be buying the stock on the cheap. Not yet, says portfolio manager Chris Stuchberry, who claims that there could very well be further downside ahead.
Before the second tragic crash of one of its Max 8 planes, Boeing’s share price was on a tear, climbing 37 per cent over the first two months of the year. Then came March and the disastrous crash of an Ethiopian Airlines flight which killed all 157 people on board, coming only months after another Max 8 had crashed off the coast of Indonesia killing 189 people.
The news has caused the grounding of Max 8’s worldwide, but while Boeing is in the midst of identifying and addressing the software problem thought to be the cause of the crashes, the US Senate has since opened an investigation on the matter in connection with the Federal Aviation Administration, signalling that Boeing’s troubles might be far from over.
“Boeing is simply a case a uncertainty on top of uncertainty. They do make great planes and it would difficult to picture the amount of flights that people take without Boeing being there long-term. That said, we could have some long-term uncertainty with the name,” says Stuchberry of Wellington-Altus Private Wealth, to BNN Bloomberg on Tuesday.
Stuchberry says that it’s too early to tell whether the stock will continue to drop.
“When you buy these things, you do want to look at your entry above all and I don’t think you’re cleared any of that uncertainty. So if you did buy here, I think it’s very realistic that you could see another down dip on some kind of an aviation report or safety report or something along those lines, let alone a lawsuit,” he says.
“So, Boeing, I think you just put it on your watch list and look for something else on a risk-forward basis,” Stuchberry says.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 408.04.
The projected lower bound is: 362.51.
The projected closing price is: 385.28.
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 28 white candles and 22 black candles for a net of 6 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.4745. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 13 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 48.12. 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 7 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 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 buy 3 period(s) ago.
Rex Takasugi – TD Profile
BOEING CO closed down -6.010 at 384.740. Volume was 0% above average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
389.930 391.000 384.090 384.740 1,266,371
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 377.28 396.64 359.61
Volatility: 32 37 37
Volume: 1,313,697 1,430,094 980,836
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 7.0% 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 16 periods.
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