The Boeing Company (NYSE:BA) Starliner under extra scrutiny in wake of 737 Max crashes, deaths

The Boeing Company (NYSE:BA) Starliner under extra scrutiny in wake of 737 Max crashes, deaths

The Boeing Company (NYSE:BA) Starliner under extra scrutiny in wake of 737 Max crashes, deaths

In the wake of Boeing’s 737 Max fiasco and resulting 346 deaths, the company’s Starliner crew capsule is coming under extra scrutiny.

The spacecraft failed to reach the International Space Station during a pivotal test flight in December. The company said a software glitch caused some of Starliner’s thrusters to fire at the wrong time.

Software issues were behind the crashes of two 737 Max aircraft as well. The plane has been grounded since March while Boeing works to correct the problems.

Last week, an independent government review found that Starliner suffered from additional software issues that could have resulted in a catastrophic failure of the spacecraft had they not been detected. 

“We don’t know how many software errors we’ve got. We don’t know if we have just two or we have many hundred, said Doug Loverro, NASA’s Head of Human Spaceflight. 

NASA is now conducting a full organizational safety assessment of Boeing. Loverro said the decision to look into Boeing’s safety culture was based on “press reports that we’ve seen from other parts of Boeing,” the software issues and the failed orbital flight test, or OFT.

“It looks as if there are, could possibly be, process issues at Boeing so we want to understand what the culture is at Boeing that may have led to that. This will be information that will help inform our go-forward plan,” Loverro said.

NASA is still deciding whether it will require Boeing to re-do the orbital flight test but may make a decision by the end of February.

Back at the Boeing Starliner facility at the Kennedy Space Center, Sanchez stood in front of the scuffed up spacecraft marred by its brief visit to space. Whatever pressure exists outside of this factory, it’s people like Sanchez and his colleagues that live and breathe building Starliner. They’ve missed holidays with their loved ones because they know the astronauts that will fly in Starliner have families, too.

“Humans are gonna fly in this. You only get one chance on this right? There’s zero room for error.”

Reminded of the Boeing employees whose emails revealed after the 737 Max deaths that they felt the airplane was unsafe, Wade hopes that the atmosphere at Starliner is a safer place to come forward if there are issues to report.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 364.27.

The projected lower bound is: 329.88.

The projected closing price is: 347.08.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 91.2329. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 16 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 62.88. 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 14 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 9 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 3.030 at 347.450. Volume was 20% below average (neutral) and Bollinger Bands were 16% wider than normal.

Open     High      Low     Close     Volume___
346.620 349.950 346.000 347.450 866,190
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 331.98 332.87 352.16
Volatility: 34 33 33
Volume: 1,114,716 1,302,143 932,725

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 1.3% below its 200-period moving average and is in an upward trend. Volatility is high 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 5 periods.

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