Boeing (BA) stock had a hard landing on Friday, falling about 5.5%. Since then, shares have been clawing back some of those losses.
The decline stemmed from a manufacturing issue as Spirit Aerosystems (SPR), which supplies fuselages for the Boeing 737 MAX, works to find a solution. The issue affects undelivered jets and will impact deliveries in the near term.
Spirit Aerosystems stock did not handle the news well, tumbling more than 20% on Friday, although it’s up about 7% so far on Tuesday.
As for Boeing, the stock is up almost 5% from last week’s low and is trying to push higher.
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The company held its annual shareholders meeting on April 18. Next week, the firm will report earnings. The former seems to be giving the stock a lift today, while the latter will be the main driver next week — whether that's good or bad, we don't know.
So far, Boeing’s stock performance has slightly edged out the overall market, up about 9% so far this year vs. an 8.2% gain for the S&P 500. However, Boeing stock has rocketed off the 2022 low, up more than 70%.
Trading Boeing Stock
Chart courtesy of TrendSpider.com
After a nice breakout, Friday’s decline sent Boeing stock below the 10-day, 21-day and 50-day moving averages. However, it held the 21-week moving average and the $200 level.
Now pressing higher off last week’s lows, Boeing shares are struggling to regain the key daily moving averages that it lost on Friday (the 10-day, 21-day and 50-day).
If the stock cannot regain these measures, it should give bulls a pause. For starters, it would leave the $200 level in play, as well as last week’s low down at $198.15.
Ultimately, more weakness could usher in a test of the low-$190s, with a special focus on the gap-fill level down at $190.65. This was a key breakout area in early January, and it’s also where Boeing stock has found support multiple times this year.
On the upside, a move back through its key daily moving averages could fuel a rally back to the $215 to $218 resistance area.
This zone also contains the declining 200-week moving average, which has been resistance so far.
If the stock can push the upper end of resistance and break out over $220, then we’ll have a new range to start trading in Boeing stock. Until then, these are the levels we have to navigate.
