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Boeing Stock: Back in Flight After Earnings? A Look at the Charts

Boeing shares are popping higher on earnings. Now the question is whether the stock can take out this key resistance mark.

Boeing  (BA) - Get Boeing Company Report shares were taking off, up about 5% on Wednesday after the company reported earnings.

The company reported its first quarterly profit in two years as global travel continues to rebound.

Boeing smashed analysts’ expectations, as the consensus estimate called for a loss in the quarter.

The stock’s gain is helping the Dow to offset the dip we’re seeing in Apple  (AAPL) - Get Apple Inc. (AAPL) Report. That’s despite the latter generating a record quarter.

Apple aside, investors have been focused on Boeing and other reopening stocks. For now, those reopening stocks have been struggling quite a bit as investors grapple with the risk of the latest delta variant for COVID-19.

Will Boeing be able to buck that concern with its latest quarter? Let’s look at the charts.

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Trading Boeing Stock

Daily chart of Boeing stock.

Daily chart of Boeing stock.

In mid-July, Boeing suffered a nasty decline as the negative headlines piled up. Amid six straight daily declines, the stock fell more than 13.5%.

On Boeing’s last session amid that decline, the stock closed below the 50-week moving average. However, the stock reclaimed that measure in the next session, before reclaiming the 200-day moving average shortly after that.

In other words, the stock was able to get back up after being knocked down.

Gapping higher on earnings now, Boeing is struggling with the 50-day moving average. Currently, that measure is rejecting the stock.

From here, I’d love to see the 21-day moving average support the stock and for Boeing to give the 50-day another test. If support doesn’t hold up, the stock may go on to fill the gap down near $225 and possibly retest the 200-day moving average.

On the upside, the 50-day moving average is the key right now. Above that and a push over $240 is possible. Above $240 and the $255 level could be next.

Should Boeing stock push through all of those levels, the 2021 highs near $278 could be bulls’ next upside target.