:max_bytes(150000):strip_icc()/BAChart-e79f33e1602e4974a1247d518573b2de.gif "Watch These Boeing Stock Price Levels Amid Possible News-Related Volatility")
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Key Takeaways
- Boeing remains on the radar after reports that the company has agreed to reacquire parts supplier Spirit AeroSystems for $4.7 billion and that the DOJ will criminally charge the aircraft maker with fraud over two fatal crashes.
- Boeing shares have oscillated within a broadening formation since early January last year, helping to establish clear support and resistance areas since that time.
- Despite the bearish sentiment surrounding the stock, the 50-week moving average crossed back above the 200-week MA in September to create a golden cross, a chart signal that often precedes the start of a new uptrend.
- The Boeing share price may find resistance from the broadening formation’s upper trendline at $290 and support near its lower trendline at $160.
Boeing (BA) stock will be on investors’ radars Monday after Reuters reported Sunday that the company has agreed to reacquire parts supplier Spirit AeroSystems (SPR) for $4.7 billion and that the U.S. Department of Justice (DOJ) will criminally charge the airplane maker with fraud over two fatal crashes and ask it to plead guilty or face a trial.
Amid the possibility for news-related moves in Boeing shares this week, we use technical analysis to identify key chart levels to watch out for.
Broadening Formation Emerges on Boeing Chart
Taking a look at the weekly chart, Boeing shares have oscillated within a broadening formation since early January last year, helping to establish clear support and resistance areas since that time. The psychology behind the pattern indicates that buyers have become increasingly willing to buy at higher prices, while sellers find motivation to take profits. This creates a series of higher interim peaks in price and lower interim lows, suggesting heightened volatility.
It’s also worth pointing out that, despite the bearish sentiment surrounding the plane maker’s stock, the 50-week moving average (MA) crossed back above the 200-week MA in September to create a golden cross, a chart signal that often precedes the start of a new uptrend.
Key Levels to Watch Amid Share Price Volatility
On a shift back to the upside, investors should monitor for a close above the closely aligned moving averages, a move which could act as a catalyst for a retest of the wedge’s upper trendline sitting around $290. Looking further ahead, a volume-backed breakout above the pattern may see the shares climb to between $330 and $370 where they would likely run into selling pressure from a zone of resistance from a series of price actions dating back to 2018 and 2019.
Conversely, if the stock continues to encounter weakness, investors should keep an eye on the $160 region, an area where the price would likely find buying interest from the wedge’s lower trendline. However, a failure to hold this key technical level could spark a breakdown to around $120, an area where a horizontal line connects three prominent price points between March 2020 and October 2022.
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