More Exclusive Clues on How to Trade Booming Boeing: Charts

 | Dec 06, 2017 | 3:19 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


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.

Columnist Conversations

Tilray's staggering 41% rise this morning leaves the company with an insane valuation and leaves Canopy Growth...
I badly want to be the person that calls the top in red-hot cannabis stocks, but fear looking like a short-ter...
Now the government will get to really dive into the inner workings of Tesla (TSLA) . Who knows what else they...
In GS I see key price support at the 224.49-226.42 area.  I also have timing for a possible low.  I ...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.