Boeing Co. (BA) has made a large potential top formation this year. Prices have recently broken below the March lows and this could precipitate further weakness in the months ahead unless a reversal develops quickly. Now that I have your attention, let's look closer at the charts and indicators.
In this daily bar chart of BA, below, we can see that prices have crisscrossed the 50-day moving average line many times since March but now prices are at their weakest position this year below the declining 50-day line. BA is also below the declining 200-day line. The daily On-Balance-Volume (OBV) line shows a slow decline from March and a small rise from August. Recently the OBV line has made a new low for the move down telling us that sellers of BA are more aggressive. In the lower panel of this chart is the 12-day price momentum study which shows momentum weakening and not slowing. No bullish divergence here.
In this weekly bar chart of BA, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has turned down the past two months and the MACD oscillator is bearish but still just above the zero line.
In this Point and Figure chart of BA, below, we can see a very bearish downside price target of $217. The volume at price data shows heavy volume in the top area and this means, at least to me, that a lot of recent longs area under water.
Bottom line strategy: BA could have a near-term rebound rally but the longer-term picture suggests we are looking at a significant top formation. Traders and investors should act accordingly.