The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital.
Take a look at the 1-year chart of Boeing (NYSE: BA) below with my added notations:
BA has been consolidating over the past 6 months, while also forming a key level of resistance to watch at the $135 (red) mark. BA has already tested that area multiple times, and has now looks to rally back up to it again. A close above that $135 level should lead to higher prices.
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The Tale of the Tape:: BA has a key level of resistance at $135. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $135.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach