The Boeing Company (NYSE:BA) sees signs that investors fear missing out on upside
Shares of Boeing Co. BA, +2.35% rallied 2.2% in afternoon trading Monday, enough to pace the Dow Jones Industrial Average’s DJIA, +0.60% gainers. The aerospace and defense giant, which is still reeling from the extended grounding of its 737 MAX planes, has now seen its shares bounce 11.3% off the 13-month closing low of $309 on Jan. 22. BofA Securities analysts Ronald Epstein and Gonzalo Asis said that an analysis of how Boeing’s stock options are trading, and following discussions with equity investors, suggest that “investors are less worried about downside risks than about missing a move higher.”
The analysts wrote in a note to clients that there is “anecdotal support,” from Boeing Bull/Bear lunches in New York and conversations with investors, that there is a “positive bias in owning Boeing’s stock in the near term, particularly as the 737 MAX approaches re-entry into service this summer.” Boeing said last month that it expects the 737 MAX to return to service in mid-2020. Boeing’s stock was still down about 2% over the past three months, while the Dow was up 5.3%.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 361.37.
The projected lower bound is: 326.82.
The projected closing price is: 344.09.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 23 white candles and 27 black candles for a net of 4 black candles.
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 88.7348. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 14 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 61.35. 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 176.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 7 period(s) ago.
Rex Takasugi – TD Profile
BOEING CO closed up 7.920 at 344.670. Volume was 3% below average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
337.090 345.900 336.500 344.670 1,056,439
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 326.65 333.71 352.50
Volatility: 34 33 33
Volume: 1,209,708 1,290,764 932,083
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 2.2% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.
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