Boeing Stock Price Levels to Watch After Plane Maker Upsizes Share Offering

Boeing (BA) shares could remain on radar screens Tuesday after the embattled airplane maker upsized a share offering announced earlier yesterday in a bid to shore up its finances and preserve its investment grade credit rating.

The company said late on Monday that it’s now offering 112.5 million shares of common stock, up from 90 million, and $5 billion in mandatory convertible securities. Boeing, which has priced the shares at $143, added that the combined offerings would raise about $21 billion.

Last month, rating agencies warned that an ongoing strike between the plane maker and its union machinists may lead to a downgrade of the company’s credit rating. Boeing’s financial challenges have been compounded this year due to several production problems. Year to date, the plane maker’s shares have fallen more than 40% through Monday’s close.

The stock was down 1.3% at $148.75 in recent premarket trading,

Below, we take a closer look at Boeing’s chart and use technical analysis to identify important price levels worth watching out for.

Shares Remain in Falling Wedge

Since September last year, Boeing shares have oscillated within a falling wedge, a well-recognized chart pattern that indicates a potential bullish reversal.

However, a recent rally from the wedge’s lower trendline ran into resistance around the 50-day moving average, suggesting underlying selling pressure in the stock.

Let’s identify key price levels on Boeing’s chart that investors will likely be watching amid news-related price fluctuations.

Key Support Levels on the Radar

The first sits around $146, an area that finds a confluence of support from the wedge pattern’s lower trendline and a range of comparable trading levels on the chart that stretch back to September 2020.

A close below this important technical level could see the shares descend to the $121 level, where they may attract buy-and-hold investors near a trendline linking three prominent troughs on the chart between May 2020 and September 2022.

Important Resistance Levels to Watch

A breakout above the falling wedge pattern’s top trendline could fuel an initial rally to around $192. Investors who have purchased the stock at lower levels could look to lock in profits around this area, which aligns with multiple peaks and troughs on the chart extending back to mid-2020.

Further buying could see the stock climb to the $234 level, a region where the price may run into resistance from a trendline joining a range of peaks that formed on the chart from June 2020 to August last year.

Finally, a more bullish move could bring the $268 area into play, where the shares would likely encounter significant selling pressure near March 2021 and December 2023 swing highs. This level also roughly corresponds with a measured moved price target that calculates the distance of the falling wedge near its widest point and adds that amount to the pattern’s top trendline. For instance, adding $100 to $170 projects an upside target of $270.

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As of the date this article was written, the author does not own any of the above securities.