“Hard” Or “Soft” Landing?

Boeing does not have the influence it once had over the industrial sector as it is now the third largest weighting in the XLI, at just under 5%. It still sits 34% off most recent 52 week highs, and has been subject to volatility regarding news on its airplanes obviously. It is currently on its first 5 week winning streak since February-March 2019 period, and is trying to make it 6 up fractionally heading into Thursday. On its WEEKLY chart it looks headed for a collision course with an upside gap fill from the week ending 3/6, right at the very round 150 number. It came close to filling it last this Monday before backing off (recording a doji candle which often indicates a softening of the prevailing trend), and the name could use some back and filling. Comparing it to main rival ERJ, which now sits 65% off its own most recent annual peak, it looks good. ERJ is in the single digits, and it recently reclaimed its 200 day SMA, a line it has been beneath for almost 11 months. Perhaps a soft landing for BA, with a retest of the bull flag breakout about 10 handles lower would be prudent.

This article requires a Chartsmarter membership. Please click here to join.