Boeing Co. (BA) was reviewed a few days ago, and we wrote, "Traders and investors should consider booking some profits on BA and/or raising their stop protection to around $320." One reader emailed a particularly nasty response after that story was published that included words the late George Carlin would not use on the radio or otherwise. In my 43 years in the securities business I have had individual investors, financial advisors and portfolio managers disagree with my forecasts but they have always been professional. Interesting and I think it says something about the sentiment in the marketplace today.
Let's take another look at BA in that prices have declined from $371 down to around $335.
In this updated daily bar chart covering the past six months, below, we can see a rapid three-day decline where prices got close to the rising 50-day moving average line. The volume of trading increased. The daily On-Balance-Volume (OBV) line turned down and the Moving Average Convergence Divergence (MACD) oscillator is still in a bearish mode that started back in January.
In this updated Point and Figure chart of BA, below, we can see a new price high at $368 and then a reversal lower. A move below $324 and $320 will weaken this chart.
Bottom line: In the past couple of days I have reviewed many more charts and stocks than the ones I have written about here in Kamich's Korner. The more charts and companies that you look at the better idea you get of what is going on under the surface. I think there is an increased risk that the broad market averages break their February lows. If that happens with BA we could see further declines to around $300 or lower.