The Boeing Company (NYSE:BA) slips after Qatar Airways said it was not interested in the planemaker’s mid-sized aircraft

The Boeing Company (NYSE:BA) slips after Qatar Airways said it was not interested in the planemaker’s mid-sized aircraft

The Boeing Company (NYSE:BA) slips after Qatar Airways said it was not interested in the planemaker’s mid-sized aircraft

Boeing Co. shares slipped lower Wednesday, pulling the Dow deeper into the red, after Qatar Airways said it was not interested in the planemaker’s mid-sized aircraft even after phasing out jumbo jets purchased from European rival Airbus (EADSY) .

Qatar Airways CEO Akbar al-Baker told reporters in Berlin that his airline would phase out the 10-year old A-380 from 2023, adding he was “not interested” in Boeing’s planned mid-market aircraft, which the Chicago, Illinois-based planemaker plans to launch the following year.  The comments were first reported by Reuters from the ITB travel fair in the German capital. 

Boeing shares were marked 1.77% lower by mid-day trading and changing hands at $422.51 each, a move that has taken around 50 points from the Dow Jones Industrial Average, which was pegged 130 point lower on the session. 

Airbus said last month it would formally scrap it struggling A380 jumbo jet program, adding the last of the last of the two-deck, 544-seat jumbo aircraft designed to challenge Boeing’s 787 Dreamliner, will be delivered in 2021.

Airbus warned last year it would have “no choice but to shutdown” the program, which builds the largest passenger planes in the world, “if we can’t work out a deal with Emirates”, the largest carrier in the middle east and the super jumbo’s biggest buyer.

Emirates, which snubbed Airbus at the Dubai Airshow in November 2017 when it opted for 787s at a list price of $15.1 billion, has purchased around 100 A380s over its decade-long existence, making it by far the most important buyer in the program.

Qatar Airways has been a major Boeing customer for several years and recently agreed to buy 36 of the planemaker’s F-15 fighter jets for around $4 billion after receiving Pentagon approval in October 2016.

The Gulf carrier also agreed to buy 30 787-9 Dreamliners and 10 777-300ERs widebody jets, with an option for a further 60 single-aisle 737 Max8s, in a deal valued at just under $20 billion if all 100 planes are ultimately delivered.  

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 395.16.

The projected upper bound is: 447.74.

The projected lower bound is: 405.64.

The projected closing price is: 426.69.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 30 white candles and 20 black candles for a net of 10 white candles.

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 21.6542. 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 62.08. 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 1 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 1. This is not a topping or bottoming area. The last signal was a sell 2 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed down -5.660 at 424.460. Volume was 8% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
429.550 432.000 422.130 424.460 917,328

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

Moving Averages: 10-period 50-period 200-period
Close: 429.86 377.45 357.51
Volatility: 23 39 36
Volume: 813,539 972,427 865,143

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 is currently 18.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 40 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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.

Latest posts by HEFFX Australia (see all)

You must be logged in to post comments :  
CONNECT WITH