Stock of the day: Boeing
03 September 2024
In today's stock of the day, let's take a closer look at Boeing, which has been trading sideways for the past few weeks. After a significant drop at the beginning of August, Boeing initially entered a period of consolidation, forming a sideways trend within a blue rectangle during the first half of the month. This period of consolidation was followed by an upswing that broke through a key resistance level at $170, marked in orange. However, after breaking this resistance, the stock entered another sideways phase.
This time, the price action has taken the shape of a descending triangle. While a descending triangle typically forms in a downtrend, this one has appeared after an upswing, adding some uncertainty to the pattern’s implications. As it stands, the price remains within the confines of this triangle, hovering above the orange horizontal support level and below the black downtrend line.
For now, traders should remain patient and wait for a clear breakout. A break above the upper black downtrend line would be a strong buy signal, indicating a potential continuation of the previous upswing. Conversely, a break below the orange horizontal support would signal a move to sell, suggesting further downside. Until then, Boeing remains in a state of indecision, and we await a decisive move.