Why Boeing Stock Looks Like It's Entering Make It Or Break It Time

Boeing Co. BA shares are trading higher Wednesday, after Bernstein upgraded the company from Market Perform to Outperform and raised the price target from $252 to $279.

The stock is poised to benefit from an inflection in global travel and improved outlook for commercial aircraft deliveries.

Boeing was up 3.09% at $225.20 ahead of the close. 

Boeing Daily Chart Analysis

• The stock has been trading with lower highs leading to a flat support level in what technical traders call a descending triangle pattern.
• The $205 level has been acting as an area of support as the stock has struggled to cross below this price. The stock has lower highs pushing it down into the support area, and the stock may soon see a break of either pattern resistance or support.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may act as a place of support, while the 200-day moving average could hold as resistance.
• The Relative Strength Index (RSI) saw a jump higher the past week or so and now sits at 57. The RSI climbing shows that more buyers have been moving into the stock, as there’s more buying pressure than selling pressure now.

See Also: Why Global Travel Trends Are Turning This Boeing Analyst Bullish

What’s Next For Boeing?

Bullish traders would like to see the stock continue to rise and cross above the pattern resistance. If the stock could cross above this level and consolidate for a time, it may be able to follow with a further bullish push.

Bearish traders are hoping to see the stock get rejected at the resistance level and fall down toward the $205 support level. Bears would then like to see the stock break below the support level and begin to hold it as resistance. This could cause a strong bearish push to follow.