Technical Analysis – Boeing stock flirts with 23.6% Fibonacci after rebounding near lows


Anthony Charalambous, XM Investment Research Desk

Boeing stock buyers reversed the price back up to 349, which is the 23.6% Fibonacci retracement of the down leg from 445.08 to 319.34 to limit further losses. The MACD and the 20-day simple moving average (SMA) are skewed towards a short-term bearish picture.

Yet, the RSI and the stochastics reflect strengthening positive momentum, with the RSI rising out of the oversold zone, while the %K has moved above 20 by completing a bullish cross of its red %D line.

If the bulls manage to push above 349, a more durable resistance area around the 361 level could apply significant downside pressure as it is where the 100- and 50-day SMAs also lie. Slightly higher another challenging obstacle around the 38.2% Fibo of 367 could test the bulls, as it is where the 20- and 200-day SMAs are currently located. Climbing above that, buyers could test the 50.0% Fibo of 382 ahead of the swing peak of 391 from September 25.

To the downside, if the 349 level restricts additional gains, the sellers could steer the price back down to encounter the 330 support coming from June 3, ahead of the fresh trough of 325.90. Breaching it could see the seven-month low of 319.34 be re-tested. Even lower, the January and November lows of 309 and 302 respectively could draw focus.

In brief, the stock seems caught in a sideways short-term pattern and only a break above 391 or below 319.34 could reveal the direction.