It’s been a long two years for Boeing, but now the chart may be signaling a turn.
The aircraft maker began its descent in March 2019, when fatal crashes forced the grounding of its workhorse 737 Max plane. BA continued facing headlines that year, followed by a nosedive when the pandemic hit.
The stock remains well below its peaks and is still one of the worst-performing industrials in the last 12 months. However, it’s worth a look given the strength in other reopening plays like energy and financials.
The first potentially positive chart pattern is the “Golden Cross” of the 50-day simple moving average (SMA) above the 200-day SMA on December 1.
Next is the price zone around $190-194.50. BA struggled at that area between late June and early November. Prices broke above it in mid-November. Then came the crucial retest in late January when buyers defended the stock at that line – despite a poor earnings report.
Finally, BA has spent the last two weeks building support above its 21-day exponential moving average (EMA). Meanwhile, it’s just now fighting back above its 50-day SMA. Those two points suggest the trend is shifting from neutral to bullish.
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The aircraft maker began its descent in March 2019, when fatal crashes forced the grounding of its workhorse 737 Max plane. BA continued facing headlines that year, followed by a nosedive when the pandemic hit.
The stock remains well below its peaks and is still one of the worst-performing industrials in the last 12 months. However, it’s worth a look given the strength in other reopening plays like energy and financials.
The first potentially positive chart pattern is the “Golden Cross” of the 50-day simple moving average (SMA) above the 200-day SMA on December 1.
Next is the price zone around $190-194.50. BA struggled at that area between late June and early November. Prices broke above it in mid-November. Then came the crucial retest in late January when buyers defended the stock at that line – despite a poor earnings report.
Finally, BA has spent the last two weeks building support above its 21-day exponential moving average (EMA). Meanwhile, it’s just now fighting back above its 50-day SMA. Those two points suggest the trend is shifting from neutral to bullish.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
