Boeing “Lifting Line of Death”! Can a multi-head recycle a flag drum? （2024.03.14）

Hello, this week's Tech Tracking analyzes the world's top aerospace manufacturer - Boeing (BA)$Boeing (BA.US)$.

Hot Spot Events

BOEING'S TROUBLES CONTINUE, AND THE STOCK PRICE FALLS CONTINUOUSLY.

On Monday, March 11, a Boeing 787 Dreamliner crashed in flight due to a technical malfunction, injuring nearly 50 passengers.

As a result, Boeing's share price fell for three consecutive days. The share prices of some airlines have also suffered to varying degrees as a result.

In fact, this is the second major incident in less than two months since Boeing has erupted. Earlier this year, an Alaska Airlines Boeing 737 Max 9 jetliner came off its fuselage doors shortly after takeoff, resulting in a loss of pressure in the cabin and an emergency landing, unfortunately causing no casualties. For safety reasons, some aircraft of the model have been suspended throughout the United States.

The two accidents plunged Boeing into a crisis of confidence, raising doubts about its quality control processes and safe manufacturing capabilities. In the future, Boeing will not only face potential lawsuits, but the company's business may also suffer as a result of disrupted production and delivery plans.

In the beginning of the year to date, Boeing's share price has fallen 30% and its market value has evaporated by more than $400 billion. Against the backdrop of strong US equities, Boeing's performance was unusually lacklustre. When will this old blue-chip stock revive investor confidence?

Technical analysis

In the aerospace field, safety issues overwhelm everything. From the trend of Boeing's share price this year, it is clear that it has been caught by two airplane safety incidents. In the short term, market sentiment is more fragile and it may be necessary to further digest the effects of recent accidents.

Trend analysis:

1. Starting at the end of October last year, Boeing's share price started a strong rally, with a maximum gain of almost 50%.

2. As a result of the accident at the beginning of the year, stock prices fell sharply, reversing a downward trend, retracting more than 61.8%.

3. After that, the stock price entered the descending triangle zone, and the adjustment process continued for almost two months.

4. Affected by the second airplane accident of the year, stock prices fell again and broke the descending triangle pattern. Empty seems to have regained control of the situation.

Indicator Interpretation:

The daily chart shows that the Boeing MACD indicator showed a dead end below the zero axis, the RSI indicator (day 14) fell below the 30 oversold boundary line, and trading increased as the bearish momentum extended. All in all, the stock price stop needs further observation.

ON THE PERIPHERAL CHART, AN UPWARD CHANNEL HAS BEEN CLEARLY BROKEN, SUGGESTING A POTENTIAL DOWNWARD RISK IN THE TREND.

Direction of attention:

According to general morphological theory, a float may look near the target price near $179 once the stock price falls below the bearish triangle's horizontal support ($198).

The bulls need to keep a close eye on last October's low near $176, which is also a 52-week low and has important psychological implications. Above this position, the share price has the opportunity to gain some support; and once the position is abandoned, the trend may deteriorate further.

This content discusses technical analysis, and other approaches, including fundamental analysis, may provide different perspectives. The examples provided are for illustrative purposes only and do not reflect the expected results.

All investments involve risk, including the potential loss of principal, which cannot guarantee the success of any investment strategy.