Technical Pulse: Boeing Co/The June 30, 2020 306

Boeing (US: BA) exhibited a strong upside late May, with prices breaking the US$200.00 psychological resistance and reaching a high of US$234.97. Prices retraced subsequently below the resistance turned support level of US$186.48 but the recent technicals indicate that Boeing may see prices attempt to push higher.

  1. Strong bullish Marobozu candle broke and closed above the descending triangle as well as the resistance turned support level of US$186.48.
  2. The potential double-bottom is a key indication of a renewed bullish upside. Breaking the neckline resistance at US$208.30 will further affirm the rally towards the potential selling zone 1 between US$251.58 – US$267.91.
  3. Boeing is trending above the 50-day period moving average, which indicates an uptrend in short to mid-term.
  4. The potential selling zone is highly attractive as the 61.8% Fibonacci retracement level of US$89.62 – US$351.69 confluence with the 127.2% extension level of US$113.89 – US$234.97.

 

*The technical call is valid for 2 weeks only.

* There will be a high possibility of a pullback once Boeing breaks the neckline resistance.

*Should price retrace further, the next support for a rebound will be at the support zone between US$141.69 and US$156.20.

 

61.8% is the golden ratio of the Fibonacci numbers and it is consider the high probability mid-way of the retracement level and 78.6% is the deep retracement level.

127.2% and 161.8% are the extension level target are often the target levels of a strong rally.

 

CHART LEGENDS

Moving average

Red dotted line = 200 day period moving average

Blue dotted line = 50 day period moving average

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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