Boeing (BA) have being printing Wyckoff distribution patter for long time followed by an Island Reversal pattern. I believe it is at the beginning of a lengthy down trend.
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Long green candle got invalidated today.
Trade active:
Very weak weekly close for Boeing. Below gap up bottom line and below stopping volume long green candle. Panic sell off will show up next couple weeks.
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TL has been retested this week. A chance to get out of BA stock. Click play to see re-test on chart.
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Boeing again breaking critical level after price got rejected from downward gap.
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Finally Boeing broke $365 support decisively. Bigger correction starts now. This stock will be a good candidate to buy as investment when correction is over.
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Progressing well. Weekly chart suggests $235 - 0.618fib + 200SMA as an exit point for this short trade.
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Boeing is about to do exactly the same as what TSLA did recently. But unlike Tesla Boeing is a good profitable company. Investing into it make sense AFTER drop completes with a bottoming pattern.
But for now BA behaves as expected and about to SPEED UP the DROP after support (now resistance) has been tested and price got rejected.
It is almost irrelevant how and when issues with the company will be resolved. Market forces are engaging. Lots of buyers at $365 and above are now eager to SELL.
Price will NOT move above $365 to give them a luxury to get out without a loss but rather it will test their patience by moving lower starting PANIC phase of market cycle. Ironically, the most patient holders will suffer the biggest losses at capitulation phase, although this will be much later.
It is hard to predict at what price reverse will happen. 200SMA at $233 on weekly TF comes into mind as first target price to exit shorts.
To make a long call, as usual, the advice is to not try to catch falling knife until you see one of bottoming patterns on at least daily or even weekly TF.
Good luck! Hopefully you got out of this stock on time.
But for now BA behaves as expected and about to SPEED UP the DROP after support (now resistance) has been tested and price got rejected.
It is almost irrelevant how and when issues with the company will be resolved. Market forces are engaging. Lots of buyers at $365 and above are now eager to SELL.
Price will NOT move above $365 to give them a luxury to get out without a loss but rather it will test their patience by moving lower starting PANIC phase of market cycle. Ironically, the most patient holders will suffer the biggest losses at capitulation phase, although this will be much later.
It is hard to predict at what price reverse will happen. 200SMA at $233 on weekly TF comes into mind as first target price to exit shorts.
To make a long call, as usual, the advice is to not try to catch falling knife until you see one of bottoming patterns on at least daily or even weekly TF.
Good luck! Hopefully you got out of this stock on time.
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Just want to update how chart is looking right now. Everything is according to the plan. Although, bounce was a bit higher than expected and longer in time but patience pays off.
BA is not good for investment for a long time (maybe a year) until we see lengthy accumulation bottoming process.
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Just a quick update on Boeing idea. It is progressing as expected with some delay. Always hard to predict timing. BA will not be good for investment for a long time. We would need to wait at least a year to see where it will find the bottom.
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Sometimes we just need to wait much longer than anticipated to get what we want... No buy for BA for long time 1-2 years. It is still going though distribution cycle.