Today, we are going to look at the Boeing Company (BA) which we last commented on in the Dec 5, 2022 edition of the Daily Stock Report when it just entered the Favored Zone in the SIA S&P 100 Index Report at a price of $185.10. Now the shares are at $230.07 representing a 24% increase in just under 9 months time. This is another perfect example of why it is important to look for names in the favored zone. The shares currently occupy the #10 spot in the S&P 100 Index, up 6 spots in the last month and 4 spots in the last quarter. Boeing is a major aerospace and defense firm. It operates in four segments: commercial airplanes, defense, space & security, global services and Boeing Capital. In looking at the attached Candlestick chart of Boeing, we see that the shares found a classic double bottom form at the May 2022 and the October 2022 low at a price of $120.00. Since that time, the accumulation phase began as the shares rose to the $220.00 area before consolidating in a tight range between $200.00 and $220.00. Most recently on July 26th when the company reported its latest earnings release, the shares gapped up and broke above this tight trading range to reach the $240.00 level. The shares have now pulled back to its 50 Day Moving average near $221.00 which is now its near-term support level. Further support can be found back at the $200 level which was the bottom of its prior trading range. Next resistance can be found at approximately the $270.00 area.
In the attached Point and Figure Chart at a 2% Scale, we see the share’s extremely strong rally starting in November of last year before losing its upward momentum in February. From February to late June, we saw a sideways consolidation pattern emerge between the $196.00 to $220.00 range. Then earlier this month, a new uptrend materialized when the shares closed above the $221.06 price level. It is currently at resistance of $239.28 which goes back to late 2020. If the shares manage to break above this near-term resistance level, next resistance is at the $264.18 to $269.47 area.
Support can be found at its 3-box reversal of $216.72 and below that, the $192.44 to $196.26 area.
With an SMAX Score of 10, Boeing is exhibiting near term strength against all the asset classes.
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