Boeing May Have Entered a Bear Market (BA)

Boeing price action since 2014 raises odds the multi-year uptrend has come to an end.

Boeing Co. (BA) is currently the third-weakest component in the Dow Jones Industrial Average after a severe decline dropped the aerospace manufacturer nearly 50% in less than three months. Worries about lower demand for new aircraft drove the majority of the decline, while pricing pressures and a slowing rate of older aircraft retirement added to the downside.

Can Seattle’s biggest employer shake off months of selling pressure and resume its upward trajectory or has the long uptrend finally ended, raising the odds for significantly lower prices in coming years? For bulls, what price levels will sound the “all-clear” for long positions and, for bears, where are the most profitable short sale entry points?

The long-term pattern shows a four-year advance that peaked at 108 in July 2007, giving way to a steep decline that bottomed out in the upper 20s in March 2009. The subsequent uptrend carved two multi-year rally waves, with the first buying impulse ending in 2010 in the mid-70s. It then entered a trading range with support in the upper 50s, remaining within those narrow boundaries into a powerful 2013 breakout.

The stock returned to the 2007 high in July 2013 and broke out two months later, lifting quickly to 145, where it dropped into another trading range. This consolidation lasted until February 2015, giving way to a final buying spike above 150 that may have ended the multiyear uptrend. It’s taken two steps down since that time, in vertical impulses that have broken intermediate support levels…read more

Read more here: Boeing May Have Entered a Bear Market (BA)

Category: BA

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