The Boeing Company (BA) reported its first-quarter results Wednesday morning, which missed both on earnings per share and revenue. Traders are early sellers and the stock is lower in early activity. Let's see what this means for the charts and indicators.
In the daily bar chart of BA, below, we can see that the shares have made lower highs and lower lows the past 12 months. All the rallies to the underside of the declining 200-day moving average line have failed. The slope of the 50-day line is also bearish and two recent bounces failed at this average line.
The On-Balance-Volume (OBV) line shows a decline from June and tells us that sellers of BA have been more aggressive than buyers for a prolonged period of time. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish and pointed lower.
In the weekly Japanese candlestick chart of BA, below, we can see that the shares have been in a downward trend and trade below the declining 40-week moving average line. I fail to find any lower shadows to tell me that traders are finally rejecting the lows.
The weekly OBV line is pointed lower. The MACD oscillator remains in a bearish alignment below the zero line.
In this daily Point and Figure chart of BA, below, we can see a potential downside price target in the $151 area.
In this weekly Point and Figure chart of BA, below, we can see a $148 price objective.
Bottom line strategy: We were
optimistic about BA's trends back on Jan. 13 but the rallied fizzled and prices turned lower. Today the downtrend continues with new lows for the move down. Avoid the long side of BA. A better buying opportunity is likely in the months ahead.
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