Dear subscribers, today we would like to inform our subscribers about the current developments in Boeing.
BA
In our last article, our analysts reported about a more bullish scenario for boeing. However, the current earning results indicate that boeing might not have finished its correction.
Additionally, the probability that a major C wave might head our way increased considerably.
Wall Street analysts were expecting Boeing to post a revenue of 16.17 billion and a slight loss of $-0.1877 per share. However, the management announced a few hours ago that the company only managed to achieve 13.99 billion in sales. In addition, the company generated a total loss of $-2.75 per share, significantly more than estimated.
That the published results were so far off analysts' estimates is a very bad sign for the Boeing stock.
Our team recently discovered a very bearish scenario on the chart, that would result in further sell-offs.
Before we present our scenarios, we would like to point out to investors that we currently hold no positions in Boeing and did not announce any long positions in our last article.
Technical explanation of the Elliot Wave structure:
Since the last all-time high at $446.01, the stock was troubled by the corona crisis and multiple 737 MAX airplanes crashed in disastrous accidents. Due to this boeing suffered a loss of nearly -80% and the sell-off stopped at exactly $89.00. Since that low, the stock recovered strongly to $278.57 until fears about the future of the company started to emerge again. More than a year later the stock is trading at barely $170.
According to the elliot wave theory, we can assume that the movements of the last years point towards a very large wave 1-2 setup. The bad news however is that boeing will correct to lower levels very likely. The warning signs are piling up that the surge two years ago was only a corrective B wave. This means that we are in a C wave and would again break below the last resistance at $89.00.
Boeing could again face a loss of more than -40% and the stock would enter another massive crisis. Unfortunately, the long-term indicators would support this prediction. The buying volume is exhausted on a monthly basis and a negative cross could soon be confirmed.
Should the important support at $141.58 be breached, prices below $90 must definitely be expected. This red marked line is the last resistance that would guarantee an imminent recovery of the share. However, it seems to be only a matter of time until Boeing will break through this line.
There is a small chance that the current movements represent multiple wave 1-2 setups. We give this scenario an extremely low probability as the stock has corrected tremendously.
We will not open any positions until we receive a clear bullish signal. The current overall market situation also does not support an investment in this stock. However, if Boeing reaches prices below $90, a long-term investment is highly recommended. In the next few years, we forecast large increases in Boeing and a long-term bull market.
As already mentioned, the current market situation does not allow an investment in this stock and only after a clear bullish reversal an investment could be considered.
Disclaimer:
According to legal regulations, Mendenmein-Capital is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk.
Mendenmein-Capital cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence.
===============================================================================================================
If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
BA
In our last article, our analysts reported about a more bullish scenario for boeing. However, the current earning results indicate that boeing might not have finished its correction.
Additionally, the probability that a major C wave might head our way increased considerably.
Wall Street analysts were expecting Boeing to post a revenue of 16.17 billion and a slight loss of $-0.1877 per share. However, the management announced a few hours ago that the company only managed to achieve 13.99 billion in sales. In addition, the company generated a total loss of $-2.75 per share, significantly more than estimated.
That the published results were so far off analysts' estimates is a very bad sign for the Boeing stock.
Our team recently discovered a very bearish scenario on the chart, that would result in further sell-offs.
Before we present our scenarios, we would like to point out to investors that we currently hold no positions in Boeing and did not announce any long positions in our last article.
Technical explanation of the Elliot Wave structure:
Since the last all-time high at $446.01, the stock was troubled by the corona crisis and multiple 737 MAX airplanes crashed in disastrous accidents. Due to this boeing suffered a loss of nearly -80% and the sell-off stopped at exactly $89.00. Since that low, the stock recovered strongly to $278.57 until fears about the future of the company started to emerge again. More than a year later the stock is trading at barely $170.
According to the elliot wave theory, we can assume that the movements of the last years point towards a very large wave 1-2 setup. The bad news however is that boeing will correct to lower levels very likely. The warning signs are piling up that the surge two years ago was only a corrective B wave. This means that we are in a C wave and would again break below the last resistance at $89.00.
Boeing could again face a loss of more than -40% and the stock would enter another massive crisis. Unfortunately, the long-term indicators would support this prediction. The buying volume is exhausted on a monthly basis and a negative cross could soon be confirmed.
Should the important support at $141.58 be breached, prices below $90 must definitely be expected. This red marked line is the last resistance that would guarantee an imminent recovery of the share. However, it seems to be only a matter of time until Boeing will break through this line.
There is a small chance that the current movements represent multiple wave 1-2 setups. We give this scenario an extremely low probability as the stock has corrected tremendously.
We will not open any positions until we receive a clear bullish signal. The current overall market situation also does not support an investment in this stock. However, if Boeing reaches prices below $90, a long-term investment is highly recommended. In the next few years, we forecast large increases in Boeing and a long-term bull market.
As already mentioned, the current market situation does not allow an investment in this stock and only after a clear bullish reversal an investment could be considered.
Disclaimer:
According to legal regulations, Mendenmein-Capital is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk.
Mendenmein-Capital cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence.
===============================================================================================================
If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
If you should have any questions regarding our analysis or elliot wave counts feel free to contact us.