Technical Analysis – Could Boeing test the recent high?
January 25, 2023 11:25 am
Boeing stock settled yesterday at 211.6, just below the recent high of 216.33. This recent small pullback could be perceived as positive by the stock bulls considering the aggressive move the stock has recorded since October 3, when it traded at 120.59. This upward move appears to be the product of the double bottom pattern formed during 2022, which, based on historical performance, suggests a target price of 235. However, only 75% of this pattern type achieve their target.
In addition, most momentum indicators appear to be endorsing the market euphoria. The RSI is comfortably in bullish territory and the Average Directional Movement Index (ADX) signals a trending market despite the recent dip. However, once again the stochastic oscillator is the party pooper. The recent stocks highs have not been reflected in the stochastic, thus potentially raising the possibility that a bullish exhaustion is building up in the market.
A move above both the 61.8% Fibonacci retracement of the March 15, 2011 – June 14, 2022 downtrend at 215.1 and the recent high of 216.33 could possibly clear any doubts on the direction of the market. The bulls could then face some resistance at the 223-233.7 range that is populated by multiple highs, before they potentially set their eyes even higher at the 240.43-242.86 area.
On the other hand, should the bears manage to stage a comeback, their initial target could come at the 204.63 level set by multiple lows recorded during 2021. Lower, the 50% Fibonacci retracement at 195.52 could trouble the bears ahead of the busier 183-189 range.
To sum up, the Boeing stock price appears ready to test the recent highs, but a potential correction could be on the cards soon.
Boeing stock settled yesterday at 211.6, just below the recent high of 216.33. This recent small pullback could be perceived as positive by the stock bulls considering the aggressive move the stock has recorded since October 3, when it traded at 120.59. This upward move appears to be the product of the double bottom pattern formed during 2022, which, based on historical performance, suggests a target price of 235. However, only 75% of this pattern type achieve their target.
In addition, most momentum indicators appear to be endorsing the market euphoria. The RSI is comfortably in bullish territory and the Average Directional Movement Index (ADX) signals a trending market despite the recent dip. However, once again the stochastic oscillator is the party pooper. The recent stocks highs have not been reflected in the stochastic, thus potentially raising the possibility that a bullish exhaustion is building up in the market.
A move above both the 61.8% Fibonacci retracement of the March 15, 2011 – June 14, 2022 downtrend at 215.1 and the recent high of 216.33 could possibly clear any doubts on the direction of the market. The bulls could then face some resistance at the 223-233.7 range that is populated by multiple highs, before they potentially set their eyes even higher at the 240.43-242.86 area.
On the other hand, should the bears manage to stage a comeback, their initial target could come at the 204.63 level set by multiple lows recorded during 2021. Lower, the 50% Fibonacci retracement at 195.52 could trouble the bears ahead of the busier 183-189 range.
To sum up, the Boeing stock price appears ready to test the recent highs, but a potential correction could be on the cards soon.
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