Boeing on Radar After Reports That It Will Reacquire Supplier Spirit AeroSystems and That DOJ Will Criminally Charge the Plane Maker
Boeing (BA) stock is making headlines once again after reports surfaced that the company has agreed to reacquire parts supplier Spirit AeroSystems (SPR) for $4.7 billion and that the U.S. Department of Justice (DOJ) will criminally charge the aircraft maker with fraud over two fatal crashes. These developments have put Boeing back in the spotlight, with investors closely watching how these events will impact the company’s stock moving forward.
Technical Analysis of Boeing Stock
Taking a closer look at Boeing’s weekly chart, it is evident that the stock has been trading within a broadening formation since early January last year. This pattern has helped establish clear support and resistance levels, indicating heightened volatility in the stock. The broadening formation suggests that buyers are willing to purchase at higher prices, while sellers are motivated to take profits, leading to a series of higher interim peaks and lower interim lows.
Despite the bearish sentiment surrounding Boeing’s stock, there was a significant development in September when the 50-week moving average crossed back above the 200-week moving average to create a golden cross. This chart signal often precedes the start of a new uptrend, providing a glimmer of hope for bullish investors.
Key Levels to Watch Amid Share Price Volatility
As investors navigate through the uncertainty surrounding Boeing’s stock, it is crucial to monitor key levels that could indicate potential price movements. A close above the moving averages could serve as a catalyst for a retest of the upper trendline of the broadening formation around $290. A breakout above this level, supported by strong volume, could propel the stock towards the $330 to $370 range, where it may encounter resistance from previous price actions dating back to 2018 and 2019.
On the flip side, if Boeing continues to face downward pressure, investors should keep an eye on the $160 region. This level is likely to attract buying interest from the lower trendline of the broadening formation. However, a failure to hold this key support level could lead to a breakdown towards $120, where a horizontal line connects significant price points from March 2020 to October 2022.
Final Thoughts
The recent developments surrounding Boeing, including its agreement to reacquire Spirit AeroSystems and potential criminal charges from the DOJ, have once again put the company under scrutiny. Investors are closely monitoring how these events will impact Boeing’s stock price in the coming days and weeks. Technical analysis suggests that key levels to watch include $290 as resistance and $160 as support, with potential breakout or breakdown scenarios depending on market sentiment.
As always, it is essential for investors to conduct their research and due diligence before making any investment decisions. The information provided in this article is for informational purposes only and should not be construed as financial advice. Stay informed and stay vigilant as Boeing navigates through these challenging times.
Sources:
– Investopedia: https://www.investopedia.com/watch-these-boeing-stock-price-levels-amid-possible-news-related-volatility-8671818
