Boeing is still on a glide path to lower lows

The Boeing Company (BA) released its first quarter results on Wednesday morning, which missed out on both earnings per share and revenue. Traders are early sellers and the stock is weaker at the start of trading. Let’s see what this means for charts and indicators.

In BA’s daily bar chart, below, we can see that stocks have been hitting lower highs and lower lows over the past 12 months. All rallies down the 200-day moving average line have failed. The slope of the 50-day line is also bearish and two recent rallies have failed this middle line.

The On-Balance-Volume (OBV) line shows a decline from June and tells us that BA sellers have been more aggressive than buyers for an extended period. The MACD (Moving Average Convergence Divergence) oscillator following the trend is bearish and points down.

In BA’s weekly Japanese candlestick chart below, we can see that stocks have been trending lower and are trading below the falling 40-week moving average. I can’t find any lower shadows to tell me that traders are finally rejecting the lows.

The weekly OBV line is pointing down. The MACD oscillator remains in a bearish alignment below the zero line.

In this daily dot-and-digit chart from BA, below, we can see a potential downside price target at the $151 area.

In this weekly Point and Figure chart from BA, below, we can see a price target of $148.

Basic strategy: We were bullish on BA trends on January 13, but the recovery has run out of steam and prices have fallen. Today the downtrend continues with new lows for the move down. Avoid the long side of BA. A better buying opportunity is likely in the coming months.

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