BA has overshot almost every conceivable range in the past few years.Lately, due to time constraints, I have been trying to scope out longer time frame opportunities. So, I'm trying to train myself to start large, zoom in, make assessments, and then be patient for the right opportunity.
Starting from a 1M chart, here is what I see:
The previous expanding wedge was absolutely smashed to pieces, with
BA soaring from $156 in Dec of '16 all the way to above $400 in the past 4 months.Let me preface the rest of this post with this: I expect
BA to have more of a retrace from these levels, back to the $260 zone in the next 12-18 months.Right now, the monthly RSI is pretty oversold, but that doesn't mean the price has to go up. In fact, a zoom into the weekly tells us the near-term is likely up:
Depending on how this weekly candle closes tomorrow, it may be bullish (near term). But I wouldn't expect it to get too far above the 200ema on the 1D any time soon.
Note that weekly RSI is also a bit oversold and may be in need of some relief.
However, it's important to note the line of support we are teetering on right now. If this line is broken, you can expect some red waterfalls to more stable price levels where buyers will step in.
A zoom into the daily time frame shows us very clear indecision in the market - with
BA being range-bound between roughly $320 and $380 since making its massive ascent from the $160 range to above $300 in Dec 2017.I also think it's important to note the symmetry in this structure. On both the weekly and the daily, the first and second half of the range are very similar in structure.
Essentially, in the coming months, I will be waiting to see a daily close below this price range in order to go short. If this trade is executed, the price levels I'm targeting are $291 and $265:
Will update this idea as time goes on.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.