The Boeing Company (NYSE:BA) said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings

The Boeing Company (NYSE:BA) said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings

$BA

The Boeing Company (NYSE:BA) said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings

Boeing on Sunday said some of its 737 planes, including many 737 Max aircraft, may have faulty parts on their wings. It’s the latest problem Boeing faces as it tries to get its most important and popular airplane, the grounded 737 Max, back in the air.

Working with the Federal Aviation Administration, Boeing said it has reached out to airlines that fly 737 planes, advising them to inspect their slat track assemblies on Max and NG aircraft. The 737 NG series includes the 737-600, -700, -800 and -900 planes.

Leading edge slats are an aerodynamic control surface that extend from the front of the wing. Some the tracks may not meet manufacturing standards and may need to be replaced, Boeing and the FAA said. They said if the parts are found to be defective, airlines should replace them before returning the planes to service.

The faulty parts could fail prematurely or crack. The FAA said a part failure would not bring down a plane, it could damage an aircraft while in flight.
Boeing has sent out a service bulletin and the FAA will issue an airworthiness directive requiring airlines to inspect and repair its slat track assemblies within 10 days.

The company discovered the problem Friday, when Boeing was meeting with the parts supplier. Boeing employees noticed some of the parts were not heat treated, which led them to believe there might be a safety issue.

The newly discovered issue affects 148 slat tracks produced by a single supplier, Boeing said. The company said it believes 20 737 Max and 21 737 NG planes may have defective slat tracks. But the FAA advised airlines to check an additional 179 Max planes and 133 NGs to determine if there parts are also faulty. Of the group that needs to be inspected, 33 Max and 32 NG planes are in the United States.

The company and the FAA said it has not been notified of any incidents related to the tracks on operating flights, and the fix should take a couple days to complete.

“We are committed to supporting our customers in every way possible as they identify and replace these potentially non-conforming tracks,” said Kevin McAllister, CEO of Boeing Commercial Airplanes, in a statement.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 369.72.

The projected upper bound is: 360.04.

The projected lower bound is: 321.80.

The projected closing price is: 340.92.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 7 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 27.0243. This is not an overbought or oversold reading. The last signal was a buy 11 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 35.87. 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 12 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 -97. This is not a topping or bottoming area. The last signal was a buy 11 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 7 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -8.260 at 341.610. Volume was 50% below average (consolidating)(neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
345.850 345.850 341.360 341.610 603,489

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

Moving Averages: 10-period 50-period 200-period
Close: 351.99 368.10 363.59
Volatility: 24 33 39
Volume: 663,212 1,000,028 1,036,217

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 down today (bearish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes.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 6.0% below 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 15 periods.

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