Boeing Co. (BA) shares have suffered another body with the revelation by the Federal Aviation Administration (FAA) that it has asked the aircraft maker to address a specific condition not covered by planned software changes with its troubled 737 MAX aircraft. While Boeing works on this problem let's check the charts one more time.
In this daily bar chart plotted through Wednesday, below, we can see that prices are above the flat/bottoming 50-day moving average line and above the rising 200-day line. The lower opening for BA is likely to test these two indicators. If BA fails to find buyers at the top of the support area beginning around $360, then further weakness is possible.
The daily On-Balance-Volume (OBV) line shows some firmness from early May. This is a positive but not a table pounder. The Moving Average Convergence Divergence (MACD) oscillator has come up to cross the zero line for an outright buy signal, but it may be short-lived.
In this weekly bar chart of BA, below, we can see what might be a large consolidation pattern or a large top pattern. It may take a close below $320 or $300 to find out if this is a top pattern. The slope of the 40-week moving average line looks to be rolling over and the weekly OBV line has weakened the past five months. The MACD oscillator has narrowed in recent weeks and was pointing toward a cover shorts signal. Price weakness on Thursday and Friday could change that potential signal.
In this weekly close-only Point and Figure chart of BA, below, we can see a potential downside price target of around $281 or so.
Bottom line strategy: Since early March the price chart of BA has taken a number of body blows. Thursday will be yet another punch to the ribs or kidneys. Price weakness below $330 should mean that the manager throws in the towel.