Boeing Co - Daily

It's not been easy for Boeing since the pandemic, initially losing 74% of its stock value. Key resistance now sits at $223.20, will the recovery continue?

Technicals

Boeing has not had the easiest of periods over the last 2 years with the Covid pandemic hammering its price into the ground, losing around 74% of its total stock value. Additionally, with the ongoing regulations, and opening and closing of borders around the world, its stock has been up and down like a yo-yo. However, it may have found its consolidation levels despite reporting weaker earnings than expected for the past two fiscal years. Looking at the chart on the daily timeframe, we can see a ‘W’ pattern has been formed which suggests there is an opportunity for further upside. Key resistance sits at $223.20, which corresponds with the upper yellow trendline. Boeing is set to report its earnings tomorrow in pre-market and it has proven that it does not need to hit market expectations to creep up. However, a positive report would increase the likelihood of a break above the resistance in the next week or two. On the other hand, the report may sour investor sentiment and see a move in the opposite direction. Consequently, support sits at $204.71 and then at $201.65. A break below $201.65 can lead to a further decline towards the $190-$195 price range. At present, MACD suggests a ‘bearish’ outlook as the signal line has crossed over the MACD line, but RSI suggests ‘bullish’ as it reads 65. So, it is fairly neutral.