The Boeing Company (NYSE:BA) secured a $51.5-million contract for providing sustainment engineering services to support up to 17 C-40A aircraft

The Boeing Company (NYSE:BA) secured a $51.5-million contract for providing sustainment engineering services to support up to 17 C-40A aircraft

The Boeing Company (NYSE:BA) secured a $51.5-million contract for providing sustainment engineering services to support up to 17 C-40A aircraft

The Boeing Company BA recently secured a $51.5-million contract for providing sustainment engineering services to support up to 17 C-40A aircraft. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.

Per the contract terms, services to be provided by Boeing includes engineering data, technical publications, distribution of technical data and other technical support. Work related to the deal will be performed in Seattle, WA, and is expected to get completed by May 2024. 

A Brief Note on C-40A Aircraft

The Boeing C-40A aircraft is a military version of the Boeing 737-700C airline transport, which is used by both the U.S. Navy and the U.S. Air Force. The C-40A Clipper is optimized to transport passengers and cargo around the globe, providing critical logistics support to the U.S. Navy. The aircraft’s flight deck features a flight management computer system with an integrated GPS, and is compatible with future GATM/FANS operating environment. 

What Favors Boeing?

Boeing, being one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Its defense segment, Boeing Defense, Space & Security (BDS), witnessed a 2% year-over-year increase in first-quarter 2019 revenues to $6.61 billion. 

Moreover, the U.S. government proposed the fiscal 2020 defense budget in March 2019, under which the Department of Defense would receive $718 billion, reflecting a 4.9% increase from the prior-year budget. Interestingly, the budget includes a spending plan of $57.7 billion on aircraft, reflecting a massive surge of 166% from the approved fiscal 2019 defense spending on aircraft. If approved, this increased spending provision should usher in more contracts for Boeing’s BDS segment, going ahead. 

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 371.37.

The projected upper bound is: 373.64.

The projected lower bound is: 335.43.

The projected closing price is: 354.53.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 3 rising windows in the last 50 candles–this makes the current rising window even more 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 54.6257. This is not an overbought or oversold reading. The last signal was a buy 7 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 44.42. 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 8 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 63. This is not a topping or bottoming area. The last signal was a buy 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 4.350 at 354.900. Volume was 40% below average (neutral) and Bollinger Bands were 20% narrower than normal.

Open High Low Close Volume___
355.000 361.360 353.000 354.900 727,265

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

Moving Averages: 10-period 50-period 200-period
Close: 350.46 370.21 363.46
Volatility: 39 33 39
Volume: 799,686 1,180,416 1,033,002

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 2.4% 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 11 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH