In our September 30 evaluation of Boeing Co. (BA) we wrote that, “I haven’t got a whole lot of confidence that BA will maintain its Could/June lows. The chance is that we see additional declines, in my view. Keep away from the lengthy facet.”
With the advantage of hindsight we will see (beneath) that the lows held. Wednesday morning the aerospace large reported disappointing quarterly outcomes and the inventory is down after briefly rallying.
Let’s verify the charts and see what is going on on.
Within the every day bar chart of BA, beneath, we will see that the shares managed to carry simply above the Could/June lows regardless of my insecurity. BA has rallied in October to cross above the 50-day shifting common line however remains to be beneath the declining 200-day shifting common line.
The On-Stability-Quantity (OBV) line bottomed in June/July and exhibits a sluggish enchancment however nonetheless alerts to us that consumers of BA are being extra aggressive. The Transferring Common Convergence Divergence (MACD) oscillator is shifting up from the next low in early October and is able to cross above the zero line for an outright purchase sign.
Within the weekly Japanese candlestick chart of BA, beneath, we will see two tendencies — a longer-term downward pattern and a more moderen potential double-bottom sample. Costs are nonetheless beneath the declining 40-week shifting common line.
The weekly OBV line has improved from a low in Could and however the MACD oscillator remains to be beneath the zero line.
On this every day Level and Determine chart of BA, beneath, we will see the energy of the current advance and a possible worth goal within the $173 space.
On this weekly Level and Determine chart of BA, beneath, the chart tells us that costs have reached a draw back worth goal of $131. A brand new higher worth goal has not been generated.
Backside-line technique: I’m slightly reluctant to change into a BA bull as a result of buying and selling quantity has not expanded sufficient to impress me and a reversal decrease may develop at any time limit.