Measured Move + Gap Fill: Short Level On Boeing (BA)

Shares of Boeing Co (BA) are powering higher today as the re-opening trade for the US economy is in full swing. As the surge continues, investors are wondering where to sell long positions and short the stock. This can be revealed in the technical chart analysis. Two major factors for the trade arrive at the same target sell/short level. That level is at $262.00. The current price is just above $240.00, which signals there is still further upside. The factors are as follows…

The first factor is a major gap fill from March 6th, 2020. Gap fills are notorious for being support or resistance, depending on which way they are being filled. In this case, price is surging up into it, thus it is resistance. The second factor is a classic measured move. In other words, the current surge up from $142.00 that started on October 30th, 2020 will reach the target of $262.00, a $120.00 move higher. This exact $120.00 move can be seen in the last surge in the stock that started back on May 13th, 2020 at $120.00 and topped out at $240.00, a mirror move of the $120.oo move expected now (measured move). As a swing trader, I will be patient until $262.00 to pull the trigger on a short on Boeing. Note the chart below on Boeing.

(Click on image to enlarge)

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