With Southwest willing to purchase more 737 MAX jets - and other airlines doing so as well - investors are hoping that Boeing has largely put those issues behind it and can get back to seeing order growth.
If that’s the case, this stock could have more momentum to it in the coming months and quarters.
That’s particularly true with the reopening trade looking more and more promising as the COVID-19 vaccines are rolling out more quickly than expected.
If Boeing gains a bit more momentum, it could refuel its way back to new 52-week highs. Let’s look at the chart.
Shares pulled back hard off the recent 52-week high, up at $278.57. However, Boeing stock found support by surging off the 10-week moving average.
Amid that move, it reclaimed the 10-day and 21-day moving averages as well.
On Monday, the stock was trying to give bulls a daily-up rotation, by clearing and closing above Friday’s high. If Boeing can clear $250.27, it will also put it back over the 61.8% retracement.
If it can do that, it puts a potentially weekly-up rotation on the table at $257.67.
Bulls would love to see a weekly rotation higher, as that would really set the stage for a rally. That’s not to say Boeing can’t get back to new highs without it, but it would force the hand of traders and certainly tip bullish in that event.
If shares can’t put together that type of rotational setup, let’s at least see that it can hold above the 21-day moving average. If it can’t and the 10-week moving average also fails as support, lower prices are on the way.
Specifically, it would put last week’s low in play near $231.75, followed by a cluster of moving averages between $215 and $225.