Shares of aircraft manufacturer Boeing (BA) are testing their 200-day simple moving average line. Let's check and see if traders are going to become buyers or sellers of BA as this lagging indicator gains attention.
In the daily bar chart of BA, below, I can see that the shares broke out to the upside in late July but stalled in early August and then turned lower. BA gave up its gains and returned to the breakout area and more. The shares trade below the declining 50-day moving average line and are testing/breaking the 200-day line.
The trading volume has been slightly more active the past three weeks suggesting that investors are voting with their feet. The daily On-Balance-Volume (OBV) line has stalled and turned lower from early August. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of BA, below, I see a weakening picture. The shares have pulled back to retest the rising 40-week moving average line. The weekly volume histogram shows a declining pattern to volume the past year and that tells me that the strength of the underlying move higher the past year has been weakening.
The weekly OBV line has turned lower and the MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of BA, below, I can see a potential downside price target in the $185 area.
In the weekly Point and Figure chart of BA, below, I used a five-box reversal filter, which suggests a downside price target in the $156 area.
Bottom-line strategy: Dow Jones Industrial Average component BA is looking weak and poised to do its best to drag down the popular average. Avoid the long side of BA.
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