Technical Analysis – Boeing stock faces worst decline in history; eyes crucial support area

Christina Parthenidou, XM Investment Research Desk

Boeing’s stock price has faced its worst decline in history in the past three weeks.

Besides the virus critical situation, the airplane designer was lately downgraded by the S&P rating agency, with its stock plunging to a fresh 3 ½ -year low of 127.90 on Monday.

With technical indicators framing a bearish picture for the short-term as all simple moving averages are slipping downwards at a time the RSI and the MACD show no sign of improvement, traders are now eagerly waiting to see if the crucial  120.00-102.84 nearby support area can halt the freefall. If not, then a sharper bearish move could follow towards the former 85.00-60.00 congested region.

On the upside, there are several barriers that need to be overcome to upgrade the bearish outlook in the bigger picture to neutral. First is the 154.00 mark followed by the 189.43 barrier and then the 241.00 resistance, where any break higher would bring the 20-day simple moving average (SMA) currently at 267.00 into view. Next should be the 300.00 round level for the stock to re-enter its 2019 range zone.

In brief, Boeing is likely to experience more losses in the near term unless the 120-102.84 area stands tall. In the long-term timeframe the market is strongly bearish and only a rise above 300.00 would eliminate negative sentiment.