Boeing Co. (BA) is trading sharply higher ahead of Wednesday's opening bell as it beat anticipated fourth-quarter earnings and revenue numbers and issued a favorable outlook for 2019. We wrote about BA the other day and our bullish forecast is playing out. Let's visit the charts again to make sure the flight plan is on track for Boeing.
In this daily bar chart of BA, below, we can see the price action through Tuesday's close. Use your imagination to visualize BA trading around $386 or so. Prices are close to breaking the early October zenith. BA is above the highs of November and early December. We can see that the daily On-Balance-Volume (OBV) line is still positive and the Moving Average Convergence Divergence (MACD) oscillator is still bullish.
In this weekly bar chart of BA, below, we can see that prices are above the rising 40-week moving average line. If you look closely at this chart you will see that there was only two weeks when BA was above $380. This means that there is very little chart resistance above the market. There are not a lot of investors who may have been patiently waiting to get out or get even from purchases back in October. The weekly OBV line is in good shape and the weekly MACD oscillator has crossed to the upside and could cross the zero line this week. This would be an outright buy signal.
In this Point and Figure chart, below, we can imagine a straight-up rally to $384.41. This will be a small double-top breakout from $365.90. There is a previous high trade at $392.30, but it does not look like it will be much of a barrier. A $475.73 price target is still in play.
Bottom line strategy: if you went long BA on our previous recommendation, then you are in the driver's seat now.