Will Boeing Continue to Rally or Get Grounded?

BA rallied Tuesday for a new high for the recent move up.

Shares of airplane manufacturer Boeing (BA) jumped over 7% Tuesday on news that their monthly deliveries improved significantly. Can this strength in the stock price continue? Or was this a bounce in a longer-term decline? Let's check the charts and indicators.

In this daily bar chart of BA, below, we can see that prices have been in a downward trend the past year. BA trades above the declining 50-day moving average line and below the weak 200-day line. Prices made a low in May and a lower low in June before a pop to the upside.

BA rallied Tuesday for a new high for the recent move up but trading volume has not expanded to show investor interest and the daily On-Balance-Volume (OBV) line remains weak.

The Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for an outright buy signal but BA has not made a big enough base pattern to get my respect. 

 

In this weekly Japanese candlestick chart of BA, below, we see a struggling stock price. BA is trading below the declining 40-week moving average line The weekly OBV line is weak and the MACD oscillator is struggling to signal a cover shorts buy signal. The candles show some white real bodies but that may not last long, in my opinion.

 

 

In this daily Point and Figure chart of BA, below, we can see a potential upside price target in the $164 area.

 

In this weekly Point and Figure chart of BA, below, we see a longer-term target in the $213 area.

 

 

Bottom line strategy: BA has suffered a long decline and should require a long repair process (bottoming). Without a decent bottom pattern I cannot get excited about the long side of BA.

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