BA pierced a key overhead trendline during yesterday’s big gain. The stock closed at its best level since the April 8th flush that followed the negative 737 production news. BA left behind an ugly breakdown gap that day, a gap that has yet to be filled.
BA is setting up well for a fresh rally leg. Initial target=$391.00. Solid nearby support is in place between $374.00 and $370.00. On the downside, a close back below $354.00 would violate this week’s low sending a clear warning sign that more sideways action is ahead.
We are long BA in some managed accounts. We are looking to add.