I believe we could see a short term price decline in the BA stock. This might be a good opportunity for a short term bearish/short trade through stocks or options. The price has been on a long term downtrend, since approximately Nov 2021. Making Lower Highs and Lower Lows.
I have attached an image here of the BA chart on Daily candles, along with several indicators that give us high probability of a bearish price action.
Through my analysis, I see the following:
1. BA June 28th 2022 price action created a Bearish Hammer
The price opened at $140.89. After the open the price went up to the daily high of $147.18. At the high the price hit the top Bollinger band where it bounced off and reversed towards the downside. The bears then drove the price down to the daily low of $138.54 and shortly closed near the day's low at $138.70. The price closed below the open price signifying that the bears have won for the day.
2. The Bearish candlestick pattern is cutting through 3 key resistance levels.
- (Resistance 1) The Bearish Candle is cutting through the key moving average at which point the BA price has rebounded from in the past, as per the circles areas in the chart with arrows pointing to them. This MA served as a resistance several times in the past and it is where the wick of the bearish hammer candle is now.
- (Resistance 2) The Bearish Candle is cutting through the horizontal resistance shown by the blue dashed line.
- (Resistance 3) The Bearish Candle is cutting through the top Bollinger band, which is a resistance point and indicated the the price is overbought.
3. The Stochastic are showing an overbought condition, and in addition the black stochastic line just went below the red stochastic line, indicating a short term bearish price action is possible/likely.
I intend to enter the short trade and have 2 target profits in mind, marked by TP 1 (@ approx $131) and TP 2 (@ approx $131) in green lines on the chart. This will depend on the risk:reward ratio and aggressiveness of the bearish price action.
It is worthy to note that BA made a high high on this last bullish wave, however in order to confirm the short term trend change, we would need to get a high low next (hopefully at TP 2 price level point, which is also resting on the lower Bollinger band).
This is just my analysis and created for entertainment purposes. This is not and should not be taken as investment advice. I am not recommending this as a trade to anyone. Please do your own research and make your own decisions.