The Boeing Company (NYSE:BA) rallies after Morgan Stanley boosts target to $500

The Boeing Company (NYSE:BA) rallies after Morgan Stanley boosts target to $500

The Boeing Company (NYSE:BA) rallies after Morgan Stanley boosts target to $500

Shares of Boeing Co. BA, +1.04% rallied 0.9% in afternoon trade Thursday, after Morgan Stanley analyst Rajeev Lalwani raised his price target to match the highest on Wall Street, saying he remains comfortable in his bullish stance despite the sharp run up this year. Lalwani reiterated his overweight rating and raised his target to $500 from $450, to tie him for the most bullish analyst of the 23 analysts surveyed by FactSet.

“In fact, we see a clear path to $500 given broadly higher market multiples alongside a potential order boost from China trade resolution, upside to consensus, [New Midsize Airplane] clarity and a 737 [rate] hike announcement in 2H19,” Lalwani wrote in a note to clients. The aerospace and defense giant’s stock has rocketed 36% year to date, to make it the best performing Dow Jones Industrial Average DJIA, -0.27% component this year. The stock’s price gain has added about 792 points to the Dow’s price this year, while the Dow has gained about 2,625 points, or 11%.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 390.33.

The projected upper bound is: 463.92.

The projected lower bound is: 420.85.

The projected closing price is: 442.38.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 90.4051. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 80.86. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 63 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 166.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 4.520 at 439.960. Volume was 5% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
438.000 441.420 437.100 439.960 1,031,544

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 423.63 368.42 355.73
Volatility: 19 40 36
Volume: 726,889 991,030 860,846

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BOEING CO is currently 23.7% 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 moderate flows of volume into BA.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BA.N and have had this outlook for the last 36 periods. Our momentum oscillator is currently indicating that BA.N is currently in an overbought condition.

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