The Boeing Company (NYSE:BA) Stock Remains a Strong Buy

The Boeing Company (NYSE:BA) Stock Remains a Strong Buy

The Boeing Company (NYSE:BA) Stock Remains a Strong Buy

Boeing BA shares had been on a bit of a decline before the deadly Ethiopian Airlines crash involving the aerospace power’s 737 MAX aircraft. Despite the deadly incident and the current investigation into the cause of the Ethiopian crash, Boeing stock remains a strong buy and its shares popped over 1.2% Monday on the back of some seemingly positive news.

Recent News

A Boeing 737 MAX aircraft crashed shortly after takeoff on March 10, which killed all 157 people on board. Similarities to an October Lion Air crash of the same new Boeing model led to the grounding of 737 MAX planes. There is currently an investigation underway into the cause of the accident. Investors should note that Boeing met with American Airlines AAL , Southwest Airlines LUV , and United Airlines UAL over the weekend in order to review software upgrades for the 737 MAX fleet, according to multiple reports .

Boeing plans on meeting with regulators and other key players in the coming days to discuss the next steps of the aircraft that the firm has said it has “full confidence in.” Nonetheless, BA on March 13 “determined-out of an abundance of caution and in order to reassure the flying public of the aircraft’s safety- to recommend to the FAA the temporary suspension of operations of the entire global fleet of 371 737 MAX aircraft.”

Meanwhile, Ethiopian Airlines’ chief executive recently said that his company still has faith in BA despite questions over the safety of its 737 MAX. “Let me be clear: Ethiopian Airlines believes in Boeing. They have been a partner of ours for many years,” Ethiopian Airlines CEO wrote in a statement.

The chief executive also noted that his company is working with investigators in Ethiopia, the U.S., and elsewhere to find out what went wrong. On top of that, Tewolde Gebremariam seemed to rebuke some reports that said its pilots were unprepared to fly Boeing’s 737 MAX . “Contrary to some media reports, our pilots who fly the new model were trained on all appropriate simulators,” Tewolde said.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 393.35.

The projected lower bound is: 348.28.

The projected closing price is: 370.82.

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 29 white candles and 21 black candles for a net of 8 white candles.

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 27.4156. This is not an overbought or oversold reading. The last signal was a buy 6 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 36.89. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -67. This is not a topping or bottoming area. The last signal was a buy 6 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 15 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 8.290 at 370.460. Volume was 35% above average (neutral) and Bollinger Bands were 73% wider than normal.

Open High Low Close Volume___
365.070 371.200 362.890 370.460 1,687,144

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

Moving Averages: 10-period 50-period 200-period
Close: 373.20 393.08 359.09
Volatility: 45 37 37
Volume: 2,823,357 1,378,960 981,434

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 3.2% above its 200-period moving average and is in an downward 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 bearish on BA.N and have had this outlook for the last 9 periods.

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