Boeing Stock Down 22%: Death Cross Suggests More Turbulence Ahead

The Boeing Company BA stock just triggered a Death Cross — an indicator of bearish sentiments rising on the stock.

The stock is down over 2.3% for the past year; -22% year to date. The investing community has also battered the stock ever since its 737 door blow-off incident.

At Benzinga, we’ve been keeping our readers updated on subsequent news and events post the blow-off:

• Over 170 Boeing 737 Max 9s Grounded, As Alaska Air Passengers Recall Terrifying Incident
• Passengers Hit Boeing With Lawsuit: Ill-Fated Alaska Airlines Flight Was ‘Waking Nightmare’
• Boeing 737-800 Takes A U-Turn After Cockpit Window Cracks In Another Midair Scare
• Boeing 737 Max Door Plug That Flew Off Alaska Air Flight Missing 4 Key Bolts: Preliminary NTSB Report
• Boeing Faces $51M Penalty For Arms Exports Violations To China, Russia
• Boeing And Spirit AeroSystems Under FAA Scrutiny For Quality Control Violations

In what seems to echo the market sentiment that drove the stock down 22% this year, the price chart for Boeing stock has triggered a Death Cross.

Boeing Stock Triggers A Death Cross

The Death Cross is a bearish technical signal marked by the 50-day moving average, falling below the 200-day moving average. In Boeing’s case, the relevant simple moving averages (SMAs) just triggered a Death Cross. In the chart above, the 50-day SMA (yellow line) has crossed below the 200-day SMA.

Traders and market participants may interpret this technical indicator as a reason to exercise caution and reevaluate their positions.

Bearish Streak — Validated

The company, already recovering from the headwinds faced during the COVID-19 pandemic, supply chain disruptions and production challenges with its 737 MAX aircraft – is now under the regulatory radar for quality concerns.

Boeing’s recent encounter with the Death Cross underscores the challenges the company is facing. Technical indicators, such as the Death Cross, should be considered in the context of broader market dynamics and fundamental analysis. Investors should remain vigilant and monitor how the company navigates through its current challenges to determine the long-term implications of this bearish signal on the stock’s performance.

Read Next: Boeing Faces ‘Reputational Minefield’ After Midair Door Blowout: 4 Analysts On Collateral Damage From 737 MAX 9 Grounding