Shares of Boeing Inc. (BA) broke out on the upside Monday to make a new high. Tighten your seat belt and let's look at the charts and indicators to see how far this move could carry the aircraft maker, which earned a mention from Jim Cramer Monday on "Mad Money."
In this daily bar chart of BA, below, we can see a nine-month consolidation pattern. Prices encountered profit taking or resistance around $375, but buyers came in at higher and higher highs, first around $315 and then around $330. There is a successful test of the rising 200-day moving average line in August and a higher low and test of that average in early September. These buyers eventually overcame the selling around $375.
The 50-day moving average line is rising. The daily On-Balance-Volume (OBV) line is pointed up and not far from making its own new high to confirm the price strength. The Moving Average Convergence Divergence (MACD) oscillator turned up from the zero line in early September for an outright go-long signal.
The indicators look bullish in this weekly bar chart of BA, below. Prices are above the rising 40-week moving average line after a couple successful tests. The weekly OBV line is positive and the weekly MACD just crossed to a fresh outright go-long signal.
In this Point and Figure chart of BA, below, we clearly can see the upside breakout from a double-top formation. A longer-term upside price target of $469 is projected.
Bottom line strategy: Traders and investors should hold longs, risking below $345 for investors and below $360 for traders. Aggressive traders can buy at current levels. My upside price targets are $400 and $450.