Shares of The Boeing Company (BA) gapped higher Wednesday after the airplane manufacturer reported a narrower-than-anticipated loss for the quarter. Let's check out the charts and indicators.
In the daily bar chart of BA, below, I can see that the shares have been trading sideways since early January. Prices have acted stronger in June and July and poked to temporary new highs in June. Wednesday's move is more impressive. BA trades above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows a rise to early June followed by some softness. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and turning higher.
In the weekly Japanese candlestick chart of BA, below, I can see an improving picture. Prices are in an upward trend and trade above the rising 40-week moving average line.
The weekly OBV line is rising and the MACD oscillator is above the zero line.
In this daily Point and Figure chart of BA, below, I can see Wednesday's upside move. The software is projecting a potential price target in the $263 area.
In this weekly Point and Figure chart of BA, below, I can see a potential price target in the $274 area.
Bottom-line strategy: BA could dip in the short-run and fill Wednesday's price gap. I would not view today's price action as a bull trap. If BA does dip, I expect it to be a very short-term event. Traders could go long BA at current levels or on a shallow dip. Add to longs above $229. The $264-$273 area is my price target.
