Aerospace giant and Dow Jones Industrial Average (DJIA) member The Boeing Company (BA) is trading higher Wednesday as investors like their revenue beat this morning. Let's review the charts and indicators as part of our pre-flight checklist.
In the daily bar chart of BA, below, I can see that the shares are back above the 50-day moving average line. The slope of the 200-day moving average line is positive and it intersects just below $180.
The On-Balance-Volume (OBV) line has been trending higher since July and tells me that buyers of BA have been more aggressive even when prices have traded sideways. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line.
In the weekly Japanese candlestick chart of BA, below, I see some green shoots. The shares are trading above the rising 40-week moving average line.
The weekly OBV line shows some modest weakness from January and perhaps some early strength now. The MACD oscillator is pointed lower but remains above the zero line.
In this daily Point and Figure chart of BA, below, I can see a potential upside price target in the $264 area.
In this second Point and Figure chart of BA, below, I used weekly price data with a five-box reversal filter. Here the software suggests a price target in the $317 area.
Bottom-line strategy: BA is a leadership stock in the DJIA but the DJIA is not a leadership average despite its long history. Strength in BA above $215 could precipitate further gains. Aggressive traders could go long on strength.
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