Fairly Straight Forward TradeBA was in a bull pennant, it broke out today and then immediately rejected some overhead resistance. It also has some strong mathematical resistance on the Z-Score (shown by the pink line on the Z-Score indicator).
Its in a broader wedge type pattern IMO (see the chart above; lines in green).
BA all around is a hot mess. Its math chart is just atrocious and thus it does not respond well to time series modelling (however, my previous time series targets on BA actually were spot on, which is nice, but I under-estimated where it would bounce). BA has constantly been hampered and sold down and has had a rocky history owning to it being a company that is so terribly managed and mishandled (yet I still stan it).
Thus, I generally need to go old school with BA and in between using the Z-Score, I generally need to rely 95% on the chart.
BA, like RTX, seems to be fairly immune to the market dramas. Yes BA sold off, but like, it was selling off all through 2021 as well. It wasn't really participating in the massive bull run that the whole market was participating in. Defense in general seems to be fairly strong (check out ITA which, of course is selling off, but not to the extent of the rest of the market). It is possible that they get caught up in the broader market panic and selling but I am just not seeing it right now.
This will end 1 of two ways, either we see BA work up the strength to break above that overhead resistance on Tuesday, in which case its a long (green candle) OR, we see rejection, in which case, it would be safe to short back down to the bottom of the wedge (red candle).
At this point, I am neutral on BA but Tuesday will tell which position BA is looking to give us.
My thoughts and opinions.
Leave your comments/questions and critiques below!
