• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Boeing: Taking Flight Amid Cloudy Conditions
Stock

Boeing: Taking Flight Amid Cloudy Conditions

by February 16, 2023
by February 16, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

When traders and investors brave the heights of speculative endeavor, clear conditions, fundamentally and technically, are the most you could ask for. But there are cases where fundamentals remain foggy and technical chart patterns seem almost hidden or questionable. This is certainly the case with Boeing (BA), as it took flight with a bullish ascending triangle pattern amid a loss-ridden yet not-too-disappointing earnings report.

Long-term guidance hints at growth and optimistic expectations, yet Wall Street knows that economic winds often play a strong hand in shifting Boeing’s market.

Are they tailwinds or headwinds? Try both.

An Ascending Triangle Amid Some Technical Turbulence

As every trader knows, patterns are not always cookie-cutter clear. The collective drive that causes formations to occur matters, and the variations in conviction will often reflect the variations in the shape of technical formations. 

The Tailwinds for Boeing Stock

A couple of bullish indications are at play. Let’s take a closer look at Boeing stock (see the chart below).

CHART 1: BOEING STOCK. Boeing’s stock price could break above the ascending triangle and continue the bullish rally that started in October. Look for a follow-through on higher-than-average volume and for the MACD line to cross above its signal line.Chart source: StockChartsACP. For illustrative purposes only.

An ascending triangle. Boeing’s ascending triangle appears to form a bullish continuation pattern of the current upswing that began in October.

Now, bear in mind that when it comes to identifying ascending triangles, the bottom formation is critical (as that’s what’s actually “ascending”). We see an ascending set of consecutive lows, but you have to bear in mind that lows are conditional to trending movements, and there are often many trends (smaller or larger) within a single trend (which is why you can draw different trendlines to trace larger or smaller swings).

What prompted the breakout in Boeing’s stock price on February 14? A massive Air India order requesting 220 Boeing jets (190 737 Max planes, 20 787 Dreamliners, and 10 Boeing 777X).

A Golden Cross occurred in mid-December. We can call this a Type 1 Golden Cross event, as the price was extended far beyond the price point in which the 50-day simple moving average (SMA) crossed above the 200-day SMA. A Golden Cross is typically considered a bullish signal, but you have to look at what you’re flying into, especially if there may be turbulence ahead.

Headwinds for Boeing Stock Price

Despite the bullish momentum underwing, there are a few things to watch out for.

RSI — Gaining Altitude While Losing Fuel? If you compare the January 6 Relative Strength Index (RSI) reading against the February 14 RSI reading, you see a move from a 77.06 (overbought) level to 64.61. This spells two things—a slight decline and divergence. So, is price driving ahead of its momentum?

MACD — The Lines Looking Not-So-Good: Take a look at the MACD line on November 15 and January 13. Boeing’s share price rose significantly, while the MACD line slid from 9.77 to 9.03. In both instances, the MACD line also crossed under the signal line (though it looks to be crossing over once again toward the upside). The MACD histogram currently holds a negative baseline reading. Sunny skies? Maybe, but you can’t deny the thick screen of clouds ahead.

The Fundamental Picture Paints a Monochrome Gray 

The pandemic hit aircraft manufacturing demand with a brutal blow to the gut. While demand has risen sharply since, many manufacturers, Boeing included, are hesitant to put the engines of production into full gear.

Boeing’s Q4 2022 performance was better than expected, despite losses in earnings and revenue (again, another instance where not-so-bad = good). The company generated the most cash flow it’s seen since 2018, when the MAX crashes triggered a yearlong tailspin. Yet the company has “a robust pipeline of development programs” looking forward, according to its CEO Dave Calhoun. And the Air India orders (among any forthcoming sales) may exert some weight on the coming quarter’s earnings report.

The Bottom Line

There are several technical and fundamental factors to consider, especially if Boeing’s stock price breaks out (or breaks down) from the current ascending triangle pattern. If you’re looking to open a long position on Boeing stock, you might wait for confirmation of the upside breakout. Check whether the moving average convergence/divergence (MACD) line cross above the signal line and look to see whether the volume supports any forthcoming follow-through. If all signals are “go,” then look to the top of the ascending triangle pattern for potential support.

Remember: there are many ways to technically and fundamentally analyze Boeing’s stock price action.

Head over to the Member Tools section of Your Dashboard.Scroll down to the Summary Pages.Select Sector Summary > Industrial Sector Fund > Aerospace.Sort the columns by SCTR and company size (U). BA should be close to the top of the list.If you select Boeing Co. you’ll see a chart of Boeing stock.You could also go back to Summary Pages, select Symbol Summary, and enter BA into the symbol box. This will give you a technical and fundamental summary, Boeing’s SCTR, any predefined scans, alerts, and ChartLists that include Boeing stock.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Bonds, Eurodollar, Metals, Oil, and a Pick
  • Sector Rotation is Giving Conflicting Stories!
  • Dow Jones in the Spotlight, Bonds Stabilize, Tech Plays Catch-Up
  • Severe Silver Cross Index Negative Divergence a Tip Off to Severe Decline?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Four Charts to Keep Inflation at Bay
next post
Is the Whole Country Buying Teslas and Eating at Wingstop?

You may also like

S&P 500 2023 Q1 Earnings Show Improvement

July 4, 2023

Are You Ready For A Huge Rally?

August 18, 2023

Looking At a Perfect Pullback Opportunity

October 14, 2023

What Does it Take to Build EV Charging Stations?

July 31, 2023

Chesapeake Energy: A Stock That Could Pump Much More

September 12, 2023

Beware of Shorts in EXTREME Cycle Lows For The Market

September 30, 2023

Stocks In Focus: Three Charts to Watch

March 28, 2025

The Best Five Sectors, #12

March 24, 2025

Everything Looks Fine… Until You See This Chart

April 24, 2025

Gold Breakdown

February 4, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Three Market Sentiment Indicators Confirm Bearish...

    August 9, 2024

    Which Cyber Security ETF is the...

    September 28, 2023

    Fed’s Victory Lap and Next Steps...

    June 14, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here