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Boeing shares remained in focus Wednesday as investors digested reports that China told its airlines not to take more deliveries of the company’s jets amid an intensifying trade war between Washington and Beijing.
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The stock temporarily dropped below the prominent November swing low last week before promptly rebounding above that level to potentially form a double bottom.
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Investors should watch important support levels on Boeing’s chart around $146 and $137, while also monitoring crucial resistance levels near $166 and $187.
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The measured move technique forecasts an upside price target in the stock of $237.
Boeing (BA) shares remained in focus Wednesday as investors digested yesterday’s reports that China told its airlines not to take more deliveries of the American company’s jets amid an intensify trade war between Washington and Beijing.
The development adds to a difficult 12 months for the plane maker’s stock, which has struggled to gain investors’ confidence after several highly publicized safety and manufacturing mishaps, compounded by a seven-week machinists strike, all of which weakened the company’s balance sheet.
Boeing shares were up 1.3% at $157.50 in mid-afternoon trading Wednesday. The stock has lost about 11% of its value since the start of the year.
Below, we break down the technicals on Boeing’s chart and point out important price levels that investors may be watching.
Tariff-driven selling in Boeing shares saw the price temporarily drop last week below the prominent November swing low, before promptly rebounding above that level to potentially form a double bottom.
More recently, the stock has drifted mostly sideways since last Wednesday’s wide-ranging day, with the relative strength index (RSI) providing a reading just below the 50 threshold to signal neutral price momentum.
Let’s identify important support and resistance levels on Boeing’s chart and forecast a measured move price target to put on the radar.
The first support area to watch sits around $146. A retracement to this level could attract buying interest near a trendline that connects a range of comparable trading activity on the chart stretching back to mid-April last year.
A close below this level could see the shares revisit lower support at $137. Investors will likely keep a close on this area near the closely aligned November and April troughs that form the potential double bottom.
A tailwind from current levels could see the shares initially climb to $166. This location provides a confluence of overhead resistance near the 200-day moving average and a series of swing lows that developed on the chart between April 2024 and January this year.
