Airplane manufacturer Boeing (BA) has turned lower in the past four weeks and is now taking aim at its May/June lows. Will the shares make a double-bottom pattern or will they continue to sink to new lows? Let’s review the condition of the charts and indicators for an answer.
In the daily bar chart of BA, below, we can see that the shares rallied for two months from the middle of June to the middle of August but have turned lower again and have nearly made a round trip in half the time. The shares are trading below the bearish 50-day moving average line and below the bearish 200-day line.
The On-Balance-Volume (OBV) line shows only slight improvement from July and the Moving Average Convergence Divergence (MACD0 oscillator is bearish.
In the weekly Japanese candlestick chart of BA, below, we see a pattern that does not instill confidence. The shares have declined by 50% since early 2021. BA trades below the declining 40-week moving average line.
The weekly OBV is not promising and the MACD oscillator is crossing to the downside for a new sell signal.
In this daily Point and Figure chart of BA, below, we can see that the shares have reached and exceeded a downside price target in the $129 area.
In this weekly Point and Figure chart of BA, below, we used close-only price data. Here the software projects the $92 area as a price target.
Bottom-line strategy: I don’t have a lot of confidence that BA will hold its May/June lows. The risk is that we see further declines, in my opinion. Avoid the long side.
Get an email alert each time I write an article for Real Money. Click the “+Follow” next to my byline to this article.