The Boeing Company (NYSE:BA) sell-off in the face of rising interest rates and trade war concerns
Boeing (BA) and fellow Dow Jones industrial stocks United Technologies (UTX), Caterpillar (CAT) and 3M (MMM) fell Wednesday. Industrial stocks are not safe havens from the tech-led sell-off in the face of rising interest rates and trade war concerns.
Boeing tumbled 4.7% to close at 367.47 in heavy volume on the stock market today, falling below its weekly buy point of 374.32. Boeing stock is still above a 364.54 entry from its daily chart.
Boeing stock rose Tuesday before closing lower after reporting stronger-than-expected 737 deliveries during September as supply chain pressures appeared to ease. Tuesday’s loss was the fourth straight decline for the Dow Jones stock, but all of those losses had been fractional. But as Wednesday’s action shows, sometimes a stock will weather a storm, only to suddenly crumble.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 361.37.
The projected upper bound is: 382.98.
The projected lower bound is: 352.41.
The projected closing price is: 367.69.
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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 28.2483. This is not an overbought or oversold reading. The last signal was a sell 2 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 47.99. 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 sell 3 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 -38. This is not a topping or bottoming area. The last signal was a sell 3 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
BOEING CO closed down -17.970 at 367.470. Volume was 36% above average (neutral) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume___
382.960 383.360 367.130 367.470 1,005,170
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 381.54 357.33 345.06
Volatility: 37 27 34
Volume: 807,377 700,213 920,587
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 6.5% above 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 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 19 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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