Shares of Boeing (BA) have been a drag on the Dow Jones Industrial Average (DJIA) and in many portfolios. The shares have been in a tailspin since early 2021 as various problems have plagued the aerospace firm.
Let's check out the charts and indicators.
In the daily bar chart of BA, below, we can see a choppy but orderly decline the past 12 months. Every short-term bounce failed at a lower and lower high. The underside of the declining 200-day moving average line worked excellently as a place to sell from October to February. Who says technical analysis doesn't work?
The daily On-Balance-Volume (OBV) line has been in a decline the past year and tells us that sellers of BA have been more aggressive than buyers. The 12-day price momentum study offers a glimmer of hope as the indicator has made equal lows in March and May while prices made lower lows. This is a bullish divergence and could foreshadow a bounce.
the weekly Japanese candlestick chart of BA, below, is bearish with no bottom reversal and no lower shadows at this point in time. BA is trading below the negatively sloped 40-week moving average line.
The weekly OBV line is bearish and on a downward slope. The weekly MACD oscillator is bearish.
In this daily Point and Figure chart of BA, below, we can see a potential downside price target in the $85 area.
In this second Point and Figure chart of BA, below, we used weekly price data and a five-box reversal filter. Here the software shows us a $117 price target.
Bottom-line strategy: BA could rebound $10 to $15 in the short-term but the technical conditions, in my opinion, do not exist for a durable low and sustained advance. Very nimble and experienced traders could play this bounce if they want, just remember this is a short-term trade and not an investment. The bigger risk is that BA gives back all of its gains from early 2020.
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