Stock of the day: Boeing
08 October 2024
In today's Stock of the day, we are focusing on Boeing, which had been in a steady downtrend since the beginning of September. The downtrend is clearly visible on the chart, marked with green lines, forming a classic channel down formation. However, this pattern seems to have come to an end last Friday, as Boeing's stock price managed to break above the upper line of the channel and move higher.
Following this breakout, Boeing encountered a key resistance level, highlighted in orange, at around $158.4. This resistance led to a price bounce, confirming its significance as a crucial level. For a long-term buy signal, we would need to see the stock price close above this orange resistance area. Given that the stock has already escaped the channel down formation, the sentiment has turned positive. A daily close above the $158.4 level would provide confirmation of a bullish continuation and a strong buy signal.
On the flip side, if the price re-enters the downtrend channel, it would negate the bullish outlook and serve as a sell signal. However, based on recent developments, the first scenario — a bullish breakout above resistance — appears slightly more likely.