Boeing Co. (NYSE:BA) shares are trading lower Friday and have recently broken below a key level of support. If the stock can hold below this support, it may bring about a period of bearish movement again.
Boeing is down 4.89% at $179.58 at publication Friday afternoon.
See Also: BOC Aviation Purchases 11 Boeing 737 MAX 8 Aircraft
Boeing Daily Chart Analysis
- Shares cracked below the $205 level and went on to test it as an area of resistance. This is a bearish sign to traders as this level is where the stock once found buyers but is now finding sellers. Bearish momentum may continue if the stock can form lower highs.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been falling for the past couple of weeks and now sits at 33 on the indicator. This shows that there are many more sellers in the market than there are buyers. If the RSI continues to fall it will enter into the oversold region and see even more selling pressure.
What’s Next For Boeing?
Boeing stock is seeing a crack below the support level and should retest the area. Holding it as resistance is a bearish sign for the stock. The stock looks like it is getting ready for a strong bearish move if the RSI continues to fall lower. Bearish traders want a strong drop lower and for the stock to form lower highs. Bullish traders want the stock to bounce and start to form higher lows again and break back above the $205 level.
