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Sunday, June 20, 2021

The Boeing Company (NYSE:BA) secured a modification contract to provide integrated logistics support

The Boeing Company (NYSE:BA) secured a modification contract to provide integrated logistics support

The Boeing Company BA recently secured a modification contract to provide integrated logistics support, product assurance and Longbow Crew Trainers for Apache aircraft. Work related to the deal is scheduled to be completed by Dec 31, 2024.

Valued at $96.9 million, the contract was awarded by the U.S. Army Contracting Command, Redstone Arsenal, Alabama. Boeing will carry out the task in Mesa, AZ.

A Brief Note on AH-64

Boeing’s AH-64 Apache is the world’s most advanced multi-role combat helicopter. It is used by the U.S. Army and growing number of international defense forces. Notably, AH-64E is the latest version of the AH-64 gunship, equipped with new sensors, avionics and improved night operation capabilities. It also has infra-red suppressing exhaust system as well as chaff and flare dispensers, which together lowers the chances of being hit by enemy air defense missiles.

Rationale Behind the Deal

Over the last couple of years, the U.S. Aerospace and Defense space has been witnessing a solid growth, courtesy of President Trump’s decision to discard his predecessor’s budget sequestration policy. This, in turn, ushered in a golden era for prominent defense contractors like Boeing, which have been witnessing a decent uptick in order growth for their valued military weapons, ever since.

Additionally, America’s rocky cross border relationship with North Korea compelled both the nations to frequently conduct counter missile testing operations for the most part of 2017. Also, the United States’ hostile stance toward Russia as well as its consistent trade wars with China has remained some of the prime highlights pertaining to defense stocks.

In the wake of such developments, the United States has significantly enhanced its surveillance, and the combat-proven helicopters play a crucial role in it. In this regard, Boeing’s contribution toward strengthening the nation’s aerospace surveillance system is worth mentioning. Notably, the company’s defense unit manufactures military helicopters besides offering a wide variety of related technical expertise, system upgrades and maintenance services. Such expertise must have allowed the company to win contracts like the latest one.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 380.72.

The projected lower bound is: 344.23.

The projected closing price is: 362.48.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 86.5426. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 53.25. 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 43 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 52. This is not a topping or bottoming area. The last signal was a buy 5 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 1 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 1.140 at 362.750. Volume was 43% below average (neutral) and Bollinger Bands were 31% narrower than normal.

Open High Low Close Volume___
361.260 365.340 361.200 362.750 654,691

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

Moving Averages: 10-period     50-period     200-period
Close: 356.97 355.93 364.42
Volatility: 19 33 39
Volume: 688,737 796,900 1,041,910

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 0.5% below its 200-period moving average and is in an upward 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 bullish on BA.N and have had this outlook for the last 0 periods.

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