Watch These Boeing Worth Ranges as Inventory Slips After South Korean Crash

Boeing (BA) shares will possible stay on traders’ radar screens after slipping greater than 2% Monday following information that South Korea ordered an inspection of all 737-800 planes within the aftermath of a Jeju Air crash over the weekend that killed 179 individuals.

Boeing shares have had a turbulent 2024, weighed down by a sequence of plane high quality points and a chronic strike by its union machinists that prompted the corporate to elevate extra capital in a bid to protect its investment-grade credit standing and stem its money drain. 

Though the inventory has misplaced one-third of its worth this yr, it has recovered round 14% over the previous month as of Monday’s shut, after the corporate reported earlier in December that it had restarted manufacturing of its troubled 737 MAX jets.

Beneath, we take a more in-depth take a look at Boeing’s weekly chart and use technical evaluation to level out essential worth ranges value watching out for.

Falling Wedge Breakout

Boeing shares have trended greater after breaking out from a falling wedge on above-average quantity earlier this month, signaling a possible bullish reversal.

Regardless of in the present day’s information-driven decline, the inventory stays above the carefully watched 50-week shifting common (MA), indicating underlying shopping for stress. Furthermore, the relative energy index (RSI) confirms bettering worth momentum, with the indicator flashing its highest readings since January.

Let’s determine three essential overhead areas on the Boeing chart to observe, in addition to a vital help stage to observe if the shares bear a retracement.

Vital Overhead Areas to Watch

Additional upside may see the shares climb to round $192. This space could present resistance close to the downward sloping 200-week MA and a trendline that connects a spread of comparable worth motion on the chart from June 2020 to July this yr.

An in depth above this location could propel a transfer to the $243 space, a area on the chart the place traders may resolve to take earnings close to outstanding swing highs that shaped in December 2020 and July 2023.

Shopping for above this stage opens the door for a retest of upper overhead resistance round $270, an space the place the shares could encounter promoting stress close to outstanding peaks in March 2021 and December final yr. Curiously, this area additionally roughly aligns with a bars sample projected goal that extracts the inventory’s uptrend from October 2022 to July final yr and repositions it from this yr’s November low.

Essential Assist Stage to Monitor

Upon a retracement, traders ought to maintain an in depth eye on the $140 stage. Purchase-and-hold traders could search for entry factors round this space close to the falling wedge sample’s decrease trendline, which additionally carefully aligns with vary of comparable worth factors extending again to October 2020.

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As of the date this text was written, the writer doesn’t personal any of the above securities.