Boeing Stock Sits Near Key Level: What's Next After Earnings?

Boeing Co. BA shares are trading lower Wednesday after the company reported fourth-quarter earnings before the opening bell.

The company's earnings per share came in at a loss of $7.69, up from a loss of $15.25 per share year-over-year. Sales came in at $14.8 billion, missing the estimate of $16.86 billion.

Boeing was down 3.68% at $196.50 midday Wednesday.

See Related: Boeing Clocks 3% Revenue Decline In Q4

Boeing Daily Chart Analysis

• Shares have been trending lower in what traders call a descending triangle pattern, but it now looks as though the pattern has ended and the stock has not seen a strong break of resistance or support. Since the end of the pattern, the stock has been moving sideways around the $205 level.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is 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 falling lower the past couple of weeks and now sits at 38. This shows that more sellers have been moving into the stock and if the stock continues to fall lower on the RSI could reach the oversold region near 30. This could bring about even more strong selling.

What’s Next For Boeing?

Boeing hasn’t seen any strong movements since ending the descending triangle pattern and shows that the stock is trading with a period of consolidation. When strong volume enters the stock, it may start pushing in one direction quickly and could start a new trend.

Bullish traders are looking to see the stock hold above the $205 level and see the RSI climb back above the middle line for a possible bullish run. Bearish traders are looking to see the stock. Hold below the $205 level and the moving averages for the stock to start seeing some bearish momentum.