More Exclusive Clues on How to Trade Booming Boeing: Charts

 | Dec 06, 2017 | 3:19 PM EST
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ba

Boeing Co. (BA) was reviewed yesterday (Tuesday) and we said, "Prices are still pointed up and our favorite indicators are not giving us a reason to sell, however, BA has doubled from its last major consolidation/base -- and prices could stall here. Traders with a high cost basis should raise stop protection to a close below $255, or below nearby support." Prices are trading a little higher today, but BA has not made a new 52-week high. Let's quickly check the charts to see if anything has changed.

In this daily bar chart of BA, below, we can see little change in the past 24 hours, except that prices have not made a new high. What does that mean? There is a quick-turning short-term reversal pattern that I have given the catchy moniker: "the close below the low of the high day." So far, Monday was the high day and if we do not make a new high and close below $276 -- the low of the high day -- we will make a small reversal.

In this weekly bar chart of BA, below, we can see that prices are still stretched to the upside when compared to the rising 40-week moving average line. The weekly OBV line is still rising, but that could change by Friday. The weekly MACD oscillator is still pointed down and the two moving averages are very close together.

In this updated Point and Figure chart of BA, below, we have added the volume at price data on the left side of the chart. There are some "pockets" where there is no volume -- and this could mean a fast decline if a correction got under way.

Bottom line: No change in view -- continue to maintain sell-stop protection.

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