Anticipating Weakness In Boeing

During the pre-market hours on Monday January 8, less than 48 hours after a new Alaska Airlines Boeing 737 Max-9 aircraft experienced a potentially catastrophic structural mid-air "event" that subsequently compelled the FAA to ground all Boeing 737 Max 9 jets, Mike Paulenoff posted the following technical commentary for MPTrader members:

"BA (Boeing)... has to deal with yet another issue with its 737 Max 9 airliner, which experienced a potentially tragic physical malfunction on an Alaska Airlines flight Friday night. What is the technical setup indicating about the impact of this incident on BA's stock price?  My attached Big Picture daily chart argues strongly that BA's weakness is a buying opportunity within the larger 3-year base accumulation pattern. That said, my nearer-term work indicates that it is too early to buy it at the moment and that the "ideal" Opportunity Windows are 218 to 210, and/or 205 to 200. From an intermediate-term technical perspective, ONLY a breach of the October 2023 pivot low at 176.25 severely impairs the larger base formation. Although BA weakness is in reaction to the 737 malfunction, the advance from the 10/25/23 low at 176.25 to the 12/21/23 high at 267.54 (+52%) was due for some magnitude of technical pullback. This incident magnifies and deepens the likely percentage pullback, but a pullback within an otherwise bullish setup remains the dominant scenario for BA in the days/weeks ahead of a resumption of strength that should make another run at 260-270, and perhaps thereafter, a run at 350 to satisfy the upside potential implied by the huge base formation... Last is 232.84..."

Fast-forward to the end of this past week, and we see that in the three weeks since the "incident" BA declined to a low of 198.32 on Thursday January 25.  That's a full 15% beneath where the stock was trading when Mike initially posted a heads up to MPTrader members to expect weakness into the 200-205 target zone, which he considered to be an "ideal Opportunity Window" to establish an intermediate-term commitment to Boeing.  BA closed last Friday at 205.47, right in "The Opportunity Window."

What now for the stock?  Early this coming week, Mike and MPtrader members will discuss, analyze, and navigate the price behavior of BA ahead of earnings due out on Wednesday morning (1/31/24) before the opening bell. Will Mike's technical work tilt bullish into earnings, suggesting a positive reaction to the report and company conference call despite recent negative news and publicity that have adversely impacted Boeing?  

Join Mike and our members for their technical and fundamental discussions about BA, as well as many other individual stocks (especially many of the Mega-Cap Technology names that are also reporting earnings this coming week), ETFs, Macro Indices, Treasury ETFs, Commodities, and Bitcoin to determine actionable, calculated-risk opportunities.

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