Would Boeing Continue To Soar Or Crash?
The Boeing Company (BA) is a conglomerate in the aerospace and defense industry. It specializes in design, manufacture, sell and maintenance of aircrafts, rockets, satellites and other communications systems.
It also has various government contracts on defense systems. BA is listed on NYSE and is a component of DJI and S&P under Industrial.
Since March 2021, BA price has been showing signs of inability to rally up. Each attempt to rally was followed by reaction to the down side, and every rally formed lower highs. This structure is typical of the Wyckoff distribution pattern.
From late Nov 2021, the price was testing the $190 support on several occasions. The Wyckoff sign of weakness (SOW) wave in Feb 2022 brought the price down to $167.60 on 8 March. The subsequent rally was weak and was unable to stay above $190.
In fact, on 21 April, the price formed Wyckoff last point of supply (LSPY) and moved all the way down to around $122 on 13 May. There was a spike of volume on 27 April, but the price continued to move down, suggesting the presence of supply and more selling pressure.
The price did a Wyckoff spring-like move on 14 June with localized increase in volume. This started the best Wyckoff sign of strength rally, that stopped at $161 on 1 August. This action also signaled the new range between $122 and $161. The confirmation came with the price sliding back down to retest $122. However, it should be noted this leg of SOW is accompanied by lower volume, an indication that supply has exhausted.
The price then started another sign of strength rally, with a spike in volume on 26 October that suggests the presence of demand. The subsequent bars are bullish supported by the absorption of supply.
Bias
Slightly bullish but likely still range bound. The price would attempt another rally to reach $160 in the near short term. However, one should observe the reaction at $160. It may form a Wyckoff back up (BU) before charging ahead, or retrace back into the trading range. Regardless, this upcoming weeks would confirm if this Wyckoff accumulation phase is sustainable for the next up waves.
More By This Author:
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Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.
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