Shares of Boeing have been pulling back since early December. This healthy action followed a powerful 73% rebound off the late October lows. BA has been tracing out a very narrow bear channel while consolidating the November ramp. The stock is beginning to pierce the upper band of this pattern with the help of today’s 2.4% gain. A close above last week’s high($216.60) could spark a fresh rally leg.
Boeing’s daily MACD is back to neutral, a very similar set up to the late October lows.
It appears BA investors are shaking off the news: https://www.zacks.com/stock/news/1245849/boeing-ba-reports-poor-q4-commercial-defense-deliveries?cid=CS-MKTWTCH-HL-analyst_blog|company_news_-_corporate_actions-1245849&mod=mw_quote_news.
Earnings are due Jan. 27/AM.
We regard BA as a fairly low risk buy at current levels. A close back below the January lows($201.00) would be a clear indication that more basing is ahead. We viewed BE in a similar way back in late September: http://thisweekonwallstreet.com/boeing-lifting/. A close below $159.00 late that month lead to another six weeks of basing.
Long BA in some managed accounts.