Boeing’s Key Levels to Know Once It Reports Earnings

Boeing is set to report earnings Wednesday ahead of the stock market open. After a quiet four weeks of trading, here's what the charts say now.
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Boeing  (BA) - Get Report shares caught fire in early June but have spent the last month cooling off. With earnings on deck for Wednesday before the stock market opens, investors will be looking for Boeing stock to gain momentum.

The tough part? Momentum could go in either direction.

Boeing has had a mess on its hands with the 737 MAX situation. The latest reports have said the jet will likely be grounded until 2021. Those that were looking for the 737 MAX to return sometime this summer are certainly disappointed.

Worse though, what airline is looking to push through new orders at a time when American Airlines  (AAL) - Get Report, United Airlines  (UAL) - Get Report and others are burning cash on a daily basis?

Demand for new jets has plummeted, but it will be management’s job to reassure investors on Wednesday.

The question is whether the stock has priced in enough bad news with shares 26.5% off the June high and working on their fourth straight weekly decline.

Trading Boeing Stock

Daily chart of Boeing stock.

Daily chart of Boeing stock.

This stock has had some stunning volatility, particularly for what was supposed to be a business with steady production and a deep backlog, turning Boeing into a cash-flow machine.

Despite its incredible fall in March followed by the huge rebound in the second quarter, Boeing stock has actually been pretty quiet lately. It has the stock wound up tight, which could give us a nice-sized move after the print.

Without earnings on deck, I would be looking at Boeing stock as a potential short. The fundamentals aren’t good, shares are clinging to range support and just lost the 20-day and 50-day moving averages. Downtrend resistance (blue line) is also pressuring shares lower.

However, this could be a look-below-and-fail type of setup, where shares flirt with a breakdown, only to recover the losses and move higher. That’s what makes earnings so tough and it’s why I prefer to see the post-earnings reaction first, then make a move.

In this case, I want to see if Boeing can reclaim the 20-day and 50-day moving averages. To do so, shares need to clear $178.33. Above puts the 38.2% retracement in play near $188, followed by $200.

On the downside, losing the $168 level could put the 23.6% retracement in play, at $150.10. Below that and the June low is possible, near $144.50.