The Boeing Company (NYSE:BA) knew of a software error that prevented the correct functioning of an alert system on the 737 Max for over a year before notifying airlines and regulators
Boeing knew of a software error that prevented the correct functioning of a safety alert system on the 737 Max for a year before disclosing the problem to regulators and airlines, according to a Sunday Wall Street Journal report.
According to the report, Boeing waited until after the October Lion Air crash to begin telling airlines that the alert system had an issue, and waited five months – until the Ethiopian Airlines crash – to reveal more details. Another six weeks passed before the public and FAA acting chief Daniel Elwell learned of the issue.
The software error was specifically related to the “angle-of-attack disagree alert,” which is supposed to tell pilots whether or not the nose-angle sensor is working properly.
It’s not clear if the correct functioning of the alert system would have changed the outcome of the fatal 737 Max crashes, however. Boeing called the system “supplemental” in a statement provided to Reuters. Still, the technology is linked to the Manoeuvring Characteristics Augmentation System (MCAS), which the Federal Aviation Administration (FAA) has admitted was responsible for the crashes. The MCAS system appeared to misfire on both flights based on information from malfunctioning angle sensors. And while the alert system would not have prevented the malfunction, it would theoretically have alerted the pilots to the problem.
Boeing engineers reportedly learned of the problem in 2017 and conducted an internal review. At that time, they concluded that the problem didn’t “adversely impact aeroplane safety or operation.” Senior company leadership didn’t learn of the problem until After the October 2018 Lion Air crash. Elwell reportedly only learned of the issue after reading about it in the Journal.
According to the Journal, who spoke to Boeing and the FAA, the FAA was only notified about the alert system failure after the Lion Air crash. The FAA reportedly reviewed the issue through February and determined that it wasn’t a safety issue.
Airlines were reportedly told of the issue months apart. Southwest told the Journal it was notified of the problem in November 2018, and started installing replacements in the planes. United said it wasn’t made aware of the problem until March 2019.
The House, the FBI, and the Department of Transportation are all reportedly probing the matter.
Reuters reported that Boeing will now make the alert system standard as was initially intended. Boeing claims that previously it had accidentally made the system an optional add on.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 384.73.
The projected upper bound is: 397.30.
The projected lower bound is: 353.97.
The projected closing price is: 375.64.
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 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 27.0885. 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 46.83. 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 28 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 -64. This is not a topping or bottoming area. The last signal was a sell 18 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 12 period(s) ago.
Rex Takasugi – TD Profile
BOEING CO closed up 0.660 at 376.460. Volume was 37% below average (neutral) and Bollinger Bands were 65% narrower than normal.
Open High Low Close Volume___
376.080 377.880 374.300 376.460 761,408
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 377.40 389.21 363.52
Volatility: 15 35 38
Volume: 800,221 1,431,349 1,009,364
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 3.6% above its 200-period moving average and is in an upward 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 bullish on BA.N and have had this outlook for the last 7 periods.
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