The Key Takeaways
- Boeing shares declined more than 2% on Monday following a South Korean order to inspect all 737-8 planes after a Jeju Air crash that claimed 179 lives over the weekend.
- After breaking through a falling wedge with above-average volumes earlier in the month, shares are trending higher. This could be a sign of a bullish turn.
- Investors should watch important overhead areas on Boeing's chart around $192, $243, and $270, while also monitoring a crucial support level near $140.
Boeing shares (BA) will remain in investors’ minds after falling more than 2 percent on Monday, following the news that South Korea had ordered an inspection of the 737-800 aircrafts as a result of the crash of Jeju Air over the weekend which killed 179.
Boeing has had an eventful 2024. Its stock price was impacted by aircraft quality issues, as well as a long-running strike by union machinists. These factors prompted Boeing to raise more capital in order to protect its investment credit rating.
As of Monday evening, the stock had recovered 14% in the last month, following the announcement by the company earlier in December, that they were restarting production on their troubled 737 MAX planes.
We will examine Boeing’s chart weekly and apply technical analysis in order to highlight important levels of price.
Falling Wedge Breakout
Boeing’s shares are trending higher, after breaking through a declining wedge with above-average volumes earlier in the month. This signals a possible bullish reversal.
Even though the price has fallen today due to news, it remains higher than the popular 50-week MA. This shows that the stock still faces a strong buying trend. The relative strength indicator (RSI), which is the most recent reading, confirms the improving momentum of the price.
Three important areas above the chart of Boeing to keep an eye on, along with a key support level to observe if shares undergo a pullback.
The Important Areas Above the Rooftop
Shares could rise to about $192. Near the 200-week MA, which is on a downward slope, and the trendline linking a number of price actions from June 2020 through July 2018 may be resistance.
Close above this point may lead to a move towards the $243 region, where investors can decide to make profits in the vicinity of prominent swing-highs which formed around December 2020 or July 2023.
If you buy above this point, it opens up the possibility of a new test at the higher resistance level around $270. This is an area in which the stock may be under selling pressure close to the prominent peaks from March 2021 and last December. This area also aligns roughly with a projected bars pattern that extracts the upward trend of the stock between October 2022 and July last, and then repositions from this November’s low.
Important Support Level for Monitor
Investors should pay close attention to the level of $140 during a retracement. Investors who are looking to buy and hold may find entry points in this area, near the lower trendline of the falling wedge pattern. This line is also aligned with a range of price points that extend back as far as October 2020.
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According to the article, as of its date of publication, the author did not possess any of these securities.
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