Shares of The Boeing Company ( BA) are weaker Friday on the heels of company news to freeze deliveries of 787 Dreamliner jets over documentation questions. Let's check on the condition of the charts and indicators.
In the daily bar chart of BA, below, I can see that the shares have gapped below the rising 50-day moving average line Friday. This downside price gap could be temporary but the risk is that is the start of a deeper pullback. Trading volume has been declining the past four months.
The daily On-Balance-Volume (OBV) line shows a rise from July but it has leveled off the past month. The Moving Average Convergence Divergence (MACD) oscillator has declined from November and is close to moving below the zero line for an outright sell signal.
In the weekly Japanese candlestick chart of BA, below, we don't see the current week's candle pattern which should be a red (bearish) candle. I can see some upper shadows near $220 telling me that traders are rejecting the highs.
The weekly OBV line looks like it has rolled over the past six weeks. The MACD oscillator has been narrowing towards a possible downside crossover.
In this daily Point and Figure chart of BA, below, I can see a potential downside price target in the $177 area.
In this weekly Point and Figure chart of BA, below, I used a five-box reversal filter, which projects a target in the $150 area.
Bottom-line strategy: Traders who are long BA should consider reducing their exposure.