Hello all,
I was recently asked about Boeing Corporation (BA) and so I thought I would take a few minutes today and take a good look at how its chart looks. I was asked about 'investing' dollars and when ever I consider an investment it is always best to work off the higher time frame charts. The weekly chart gives you a nice broader picture of price action and tonne to the market.
Regardless of your opinion of the company or the state of the broader global economy, I for one would take extreme caution when it comes to this stock. While she hasn't broken down just yet, there are mounting signs a correction within this name (and probably for the broader market in general) seems awfully overdue. That 'top' may take many forms but is generally of the 'M' fashion. Very much like its last cycle peak, should we start to see lower highs and lower lows, bulls should be very leery. Indeed, a move just back to my '1st stop' target is almost 20% lower from current levels. A move back into the OTE (long) zone is half of today's prices.....jinkies
From a shorter term time perspective, I am sure, aggressive traders are shorting up top here and risking to a break of that 144.57 high. They will know they are 'golden' on those shorts if 118 is taken out in earnest. Not a bad risk/reward considering the potential downside profit window. Having said that, taking a trade like that brings with it a bunch of factors (risk profile, account size, trading plan, etc) that are not part of this analysis.
So my simple message to 'investors' is this, It is WAY too late to consider new purchases and any ideas of buying should at the very least be put on hold until the current trading range resolves itself. Considering the current proximity to the top of the weekly trading channel, my hunch is the next serious bullish resolution won't be for a while. Had you taken the bullish consolidation breakout 'buy' (from around $80) you should at the very least be looking to sell half your position at double your purchase price. You are 'up' a lot and you have lots of 'wiggle' room should a correction need to occur. Should that 'M' top be confirmed (move through 118.77) those long positions could be liquidated with the anticipation to buy them back on the next 'W'. That has yet to happen though so don't put the cart before the horse. For the time being, price is sideways and 'consolidating' and nothing more. Considering the highs are only 10% away, if this is still a bull market those highs will be broken easily.
Cheers all and hope you can you this information to your benefit.
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5
& follow me on Twitter @CRInvestor
I was recently asked about Boeing Corporation (BA) and so I thought I would take a few minutes today and take a good look at how its chart looks. I was asked about 'investing' dollars and when ever I consider an investment it is always best to work off the higher time frame charts. The weekly chart gives you a nice broader picture of price action and tonne to the market.
Regardless of your opinion of the company or the state of the broader global economy, I for one would take extreme caution when it comes to this stock. While she hasn't broken down just yet, there are mounting signs a correction within this name (and probably for the broader market in general) seems awfully overdue. That 'top' may take many forms but is generally of the 'M' fashion. Very much like its last cycle peak, should we start to see lower highs and lower lows, bulls should be very leery. Indeed, a move just back to my '1st stop' target is almost 20% lower from current levels. A move back into the OTE (long) zone is half of today's prices.....jinkies
From a shorter term time perspective, I am sure, aggressive traders are shorting up top here and risking to a break of that 144.57 high. They will know they are 'golden' on those shorts if 118 is taken out in earnest. Not a bad risk/reward considering the potential downside profit window. Having said that, taking a trade like that brings with it a bunch of factors (risk profile, account size, trading plan, etc) that are not part of this analysis.
So my simple message to 'investors' is this, It is WAY too late to consider new purchases and any ideas of buying should at the very least be put on hold until the current trading range resolves itself. Considering the current proximity to the top of the weekly trading channel, my hunch is the next serious bullish resolution won't be for a while. Had you taken the bullish consolidation breakout 'buy' (from around $80) you should at the very least be looking to sell half your position at double your purchase price. You are 'up' a lot and you have lots of 'wiggle' room should a correction need to occur. Should that 'M' top be confirmed (move through 118.77) those long positions could be liquidated with the anticipation to buy them back on the next 'W'. That has yet to happen though so don't put the cart before the horse. For the time being, price is sideways and 'consolidating' and nothing more. Considering the highs are only 10% away, if this is still a bull market those highs will be broken easily.
Cheers all and hope you can you this information to your benefit.
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5
& follow me on Twitter @CRInvestor