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Why Boeing Is Trading This Way

|About: The Boeing Company (BA)

The fundamentals are out the window.

Because the bad news is still unfolding.

Why has it stopped falling?

Will it start falling again?

The bargain hunting buyers are supporting Boeing (NYSE:BA) price between $364 and $388. This trading range is already established. They are willing to pay up, but they are not willing, so far, to breach the resistance level. 

The monthly chart below shows why it has stopped falling in price. You can see the strong support, where a lot of buying was done for many months in the trading range between $320 and $360. I think it will take months for all the bad news to play out with BA. That is why you want to use the monthly chart to see it grind away in never-never land between $320 and $360.

i think it will start falling once the current bargain hunting buyers are finished buying the 150 million shares that were dumped on the market by trigger happy sellers. Maybe in June on a really bad market day, BA might reach down to touch the bottom at $300. I think we will see this print and exhaustion selling to mark the bottom at $300. Then after all the investigations and law suits, I expect to see the 12 month climb back to $444. I think the bounce might start when the planes are back in the air.

Here is the link to our live charts on BA so you can follow our future comments at the bottom of each chart:

Here is the monthly chart we are watching live:

BA mthly As you can see all the signals are turning down and I think it will take months before they start improving. That will be soon enough for me to buy.

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Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in BA over the next 72 hours.