I'm long Boeing so hate to see this but the support line of the head and shoulders formation has just broken.
The 200 SMA is just below and could act as support, although historically it hasn't done.
The projection down is quite severe.
Company reports earnings on July 28 which could change things, or accelerate. My stop will have been long hit by then I expect.
H&S isn't a guarantee anything will happen but its not a good sign either. If I can get a bounce off the 200 I will look to at least reduce my position size.
Comment
⋅
Blue line is the 200 SMA. Green dotted line is the H&S support.
Don’t short BA! Last time I this happened was on May 12th and it ripped up higher. All bad news already baked in. BA just got pulled down only on a short term in response to the Delta variant and recent production issues. Stay long, BA Will rip up again.
JBlack99
⋅
@ktaba thanks for commenting ktaba, I’m long so hoping I’m wrong.
ktaba
⋅
@JBlack99 give it till a couple days as BA sometimes likes to break the 200 ema for a little bit.
trung.lekien
⋅
Head & Shoulder - Same idea :) but i will wait for long at 207
JBlack99
⋅
@trung.lekien, I'm now short so can't hit the "agree" button but i see the sense in your approach with that recent support there. I'd want to see at least some movement back up before reversing back to long though, if the trend is still down at $207 will you risk going long anyway or wait for a sign of upward movement?
trung.lekien
⋅
@JBlack99, Actually 207 stand still, some how strong buy signal was there yesterday. maybe waiting for Earning report is the better choice :)