Key Takeaways
- Boeing shares closed slightly lower Tuesday, ending a five-day streak of gains of 14%.
- Since forming the bullish piercing patterns earlier this month the stock has continued moving higher, potentially forming double bottoms in the process.
- Investors should watch overhead areas on Boeing's chart around $187 and $215, while also tracking important support levels near $140 and $121.
Boeing (BA), shares closed slightly lower Tuesday, ending a five-day streak of gains of 14%.
The stock got a boost to start the week after analysts at Berstein upgraded the stock, pointing out that the jet maker’s narrower-than-expected first quarter loss posted last week indicates a turnaround toward growth. Spirit AeroSystems Holdings, a rival of Boeing, and Airbus reached a deal on Monday that will allow Boeing to re-acquire this supplier in order to improve its manufacturing.
Boeing shares have gained 5 percent since the start the year. After a turbulent 2024 in which the stock lost a quarter of its value due to a string production mishaps, and a crippling machine-workers strike, investor sentiment has improved. Boeing shares fell by 0.2% on Tuesday to $182.
Below, we breakdown the technicals in Boeing’s chart and identify important price levels that are worth keeping an eye on.
Double Bottom Takes Form
Boeing shares continue to rise after forming a bullish piercing chart earlier this month. This could be a sign of a double bottom.
It’s worth noting as well that the relative strength index (RSI), while making a lower low this month, also made a comparatively deeper trough, creating a bullish divergence. This technical occurrence indicates a weakening of selling pressure.
Identify two major overhead areas that investors might be watching on Boeing’s chart and also locate important levels of support to keep track of during pullbacks.
Major Overhead Areas of Interest
The first area to keep an eye on is around $187. This level could provide resistance near the 200-week moving median and a horizontal line connecting a range of trading activities on the chart that stretches back to late 2020.
Boeing shares may reach $215 with further buying enthusiasm. Investors who are looking for profit-taking chances may decide to sell near the upper range on the chart during a period of sideways movement between January and 2023.
This location is also in the vicinity of a projected bar pattern target which takes the stock’s steep upward trend following a previous double bottom on the graph and repositions from this month’s lowest point, providing insight into how a similar move may play out.
Important Support Levels To Track
A retracement could see the shares drop to around $140. This area of the chart is likely to attract buying interest near the prominent swing low from last November, which also closely coincides with a short period of consolidation in late 2022.
A further decline in Boeing’s shares could result in a drop down to lower support of $121. Investors could view this level as a possible buying level near the swing-lows in May and September of 2022, which preceded the steep rise that the stock experienced in the fourthquarter of that year.
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