Boeing Co. (BA) lead the market on the way up for years but has the flight plan made a major change in direction? Let's check out the latest charts and indicators to see where the gauges are pointing now.
In this daily bar chart of BA, below, we can see the price action of the last 12 months. Prices rally from late December to early March in more of a rocket ship advance than a commercial airline. The rally is over in just two months, and over the past three plus months BA has worked lower and lower.
The 50-day moving average line has a negative slope and it is close to crossing below the cresting 200-day line for what is commonly called a dead or death cross. This signal is typically late and only works well in long-trending markets.
The daily On-Balance-Volume (OBV) line shows a decline from early March telling us that sellers of BA have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a bearish configuration.
In this weekly bar chart of BA, below, we can see a long and impressive rise the past three years. Prices are below the cresting 40-week moving average line.
The weekly OBV line is edging lower and the MACD oscillator is crossing below the zero line for an outright sell signal.
In this Point and Figure chart of BA, below, we can see a potential downside price projection of $292.
Bottom line strategy: BA has been a great stock to own so it is hard to accept that chart may be changing. Prices could bounce but it looks like weakness below $330 could precipitate further declines. Become more defensive.
