DOW JONES OVERVIEW: BOEING HOLDS 10-YEAR TRENDDuring the recent selloff, Boeing on long term basis failed the 5-year uptrend by falling below 1st upper standard deviation from 5-year (260-week) mean @ 137, however held the test of 10-year uptrend by bouncing up from 1st upper standard deviation from 10-year (520-week) mean @ 121.
On short term basis, the price managed to hold 1-year ascending channel (marked by 1st standard deviation from 1-year (264-day) mean, but the risk remains on quarterly basis - the price is below 1st standard deviation from quarterly (66-day) mean (also close to 137), reflecting probability of more downside here.
Thus we can conclude that while price is trading above upper 1st standard deviation from 10-year mean @ 121, the overall bias remains positive.
It will be confirmed by price getting back into 5-year uptrend by breaking above upper 1st standard deviation from 5-year mean @ 137
BA
BA 8-29-2014 Cup and Handle I see a classic cup and handle formation, with some selling when we reached the near term high (profit takers), but not convinced entirely due to the low volume in the pattern creation.
That said, if we break downtrend and clear the previous near term high of 129.80, it could be a quick sail to 133.
With the impending Ex-im bank re-authorization coming up in the next couple of weeks, that positive trigger could complete the formation and provide that breakout.
Short term target is 133 by 9/30 a 4.8% move in the next 20 trading days.
BA likes to Swim for Recreation but curretly needs Air.Ignore the MA Death Crossover that BA underwent just recently. BA at this very appealing support level should become a necessity to buy up for any fund holding it. There has been some noticeable bullish momentum divergence to boot and a look to the 4hr chart indicates that we should see a little pop in the coming days to keep us out of danger. Look for a retest of 130. This should provide a nice 1:2 R/R opportunity for most.
Also, wish I could edit title to correctly spell 'currently'..
8/22/14: due to the hanging man yesterday and the solid run up thus far: I'd raise any stops to under yesterday's low.
BA Is Coming In For A Landing, Watch This Level...Leading aerospace manufacturer The Boeing Company is trading lower again this morning. The stock has come under major distribution in 2014 after peaking out in January at $144.57 a share. Today, the Boeing is trading lower by $2.13 to $124.58 a share. Many traders and investors are now hearing that business is slowing down for The Boeing Company. Earlier today, the stock was downgraded by BofA/Merrill Neutral from Buy citing potential cancellations in orders and shrinking military programs. Traders and investors must now look to the charts to find important support levels where the stock could stage a bounce and create a trading opportunity. At this time, The Boeing Company stock should have important support around the $117.75 level in the near term. This was a level where the stock broke out in October 2013. Often, prior break-out levels will serve as important support when retested.
Nick Santiago
Chief Market Strategist
www.InTheMoneyStocks.com