Boeing (BA) has had a rough month since it was last featured in the September 26th edition of the Daily Stock Report. At that time, it had just fallen out of the green zone in the SIA S&P 100 Index Report. Since then, its relative strength has continued to weaken.
Over the last month, Boeing has lost 8.46%, compared with a 2.91% loss for the benchmark iShares S&P 100 Index ETF (OEF). The shares have continued to drop down the rankings losing 27 spots in the last month and this week diving down to 56th place in the Red Unfavored Zone. In addition, its SMAX score has dropped from 4 to 0. Worse than expected quarterly losses and cuts to production forecasts announced earlier this week have not helped sentiment in a challenging market. This candlestick chart shows that since peaking back in the summer, Boeing (BA) has been under consistent distribution with a downtrend of lower highs emerging and broken support lines becoming new resistance. In particular, check out action near the $200.00 level earlier this month (upper red circle). After taking out that round number, the shares drifted toward $180.00 before staging a rebound. The shares peeked back up above $200.00 for part of one day only to get smashed back down to form a bearish Shooting Star which quickly followed by a breakaway gap to the downside and the completion of a bearish Evening Star pattern.
Yesterday, the shares fell to their lowest level since December after completing a Bearish Engulfing candle on a spike in volume, a sign of increased selling pressure. Next potential downside support appears at previous resistance levels near $170.00 and $150.00 with initial support possible in the $185.00-$190.00 area.
Boeing (BA) shares have been under steady distribution since peaking back in August. For the last two months, the shares have been increasingly extending an O column into a bearish Low Pole without even a three-box correction along the way. The shares have also completed a bearish Double Bottom and two bearish Spread Double Bottom patterns.
Initial downside support appears in the $157.85 to $164.25 zone, where a horizontal count and previous highs and lows cluster, followed by 45-degree uptrend support and $151.75 and the $150.00 round number. Initial resistance appears near $192.45 based on a 3-box reversal.
With a perfect bearish SMAX score of 0, BA is exhibiting weakness across the asset classes.
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