The Boeing Company - (BA) - September 26, 2023
Boeing (BA) has had a difficult month on both an absolute and relative basis. With the shares falling 11.0%, the plane maker has dropped 18 positions in the SIA S&P 100 Index Report, first falling out of the top 10, and more recently, dropping out of the green zone and into the Yellow Neutral Zone for the first time since December of 2022, finishing yesterday in 27th spot.
There are currently no Aerospace & Defense companies in the Green Favored Zone but top 10 ranked Industrials include General Electric* (GE), and Caterpillar* (CAT). Back in August, things were looking pretty good for Boeing (BA) when its shares gapped up and broke out on volume, but this turned out to be a big head fake as the rally quickly unraveled. This month, the shares have come under distribution with volumes drying up and the shares consistently declining. Along the way, BA has taken out both its 50 and 200-day moving averages, snapped an uptrend line and fallen back under the $200.00 round number, all combining to signal the start of a new downtrend.
Potential downside support tests appear near $185.00 and $170.00 based on previous highs and lows. Initial resistance on a bounce appears at the 200-day average near $210.00.
*Shares of General Electric and Caterpillar (CAT) are currently held in portfolios managed by SIA Wealth Management.
A critical test of support is underway in Boeing (BA) shares on this 1% chart. A late summer slide has reversed a previous rally, completed bullish Double Bottom and Spread Double Bottom breakdowns and sent the shares back to test the low end of a trading range near $196.00.
A successful test of support and a bounce back up above the $200.00 round number plus the completion of a 3-box reversal with a breakout over $205.90 initial resistance would confirm the current trading range remains intact.
A close below $195.90, would complete a pending bearish spread triple bottom pattern and confirm the start of a new downtrend with next potential support near $188.25 or $173.85 based on a combination of horizontal counts and previous column lows.
With a bearish SMAX score of 4, BA is exhibiting weakness against the asset classes.
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