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Technical Analysis – Boeing stock testing crucial support region

Boeing’s shares have been grinding lower since June, albeit in a slow and controlled manner. The short-term price structure looks cautiously negative, as the stock has been printing lower highs and is trading beneath its 50- and 200-period simple moving averages (SMAs) on the four-hour chart, which seem ready to post a ‘death cross’. The silver lining is that there hasn’t been a lower low, as the 153.0 support zone has held strong so far.

Short-term oscillators reflect this mildly negative picture. The RSI has just tested its 30 zone, while the MACD is both negative and beneath its red trigger line, though not by much.

If the bears stay in control, their first target will be the crucial 153.0 support level, which halted the selling in early August. If that gives way, the near-term outlook would turn decisively negative, opening the door for a test of 142.5, the May 29 low. Even lower, the 136.0 zone might come to the rescue.

If the bulls wake up again, the first obstacle to the upside could be near 167.5, where both the 50- and 200-period SMAs are currently resting. Not far above is the 170 handle, which can be considered part of the same zone. If buyers power above, all eyes would turn to the 181.0 region.

To wrap up, the short-term picture seems neutral-to-negative, though a break below 153.0 could turn it decisively negative.

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