Boeing's Stock Is Entering Do-Or-Die Time

Boeing Co BA shares are trading lower Thursday after the company announced it is dealing with a defect on its 787 Dreamliner. The defect involves titanium parts that are weaker than they should be. A Boeing spokesman said the company is making progress on improving production and raising its own standards.

Boeing was down 1.59% at $218.24 at last check Thursday.

Boeing Daily Chart Analysis

• The stock looks to have been rejected at a resistance level and could be heading back toward support in what technical traders call a descending triangle pattern.
• The $205 price level is an area where the stock has been able to hold as support in the past, but could be broken in time if the stock continues to test this area. The pattern resistance has been a place the stock struggles to cross above in the past and may continue to in the future.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) has been moving lower the past few days and sits at 45. This shows the stock has seen a drop in the amount of buying pressure and there are now more sellers than buyers.

What’s Next For Boeing?

Bullish traders want to see the stock form higher lows and break above the pattern resistance. This could cause the stock to see a change in trend and a possible change of sentiment.

Bears are looking to see the stock break down below support and continue to head lower. If the support in the pattern can begin to turn into resistance, then the stock may be ready for further lower moves.

Photo: Courtesy of Boeing