Boeing Dips on Earnings - Here's the Key Support Level

Boeing stock is selling off after the company wrapped up one of its worst years on record. Let's look at the chart to find support.
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Boeing  (BA) - Get Report shares on Wednesday are flying a bit lower, down almost 4% after the Chicago aerospace giant reported fourth-quarter results.

The company reported a loss of more than $15 a share, weaker than analysts’ expectations of a loss of $1.80 a share. Those results may not be exactly comparable, as Boeing logged a $6.5 billion charge for its 777X program. 

Not helping sentiment is that Q4 free cash outflow measured in at more than $4 billion and that revenue fell 15% year over year to $15.3 billion. The revenue figure did beat analysts’ expectations of $15.07 billion.

Given these results, the dip in Boeing is not a surprise. Some investors may even be surprised that the stock isn’t under more pressure. Perhaps it’s the fact that investors are looking forward, not backward, with Boeing. 

Travel should pick up the pace this year and the 737 MAX is being certified to fly. In fact, the European Union Aviation Safety Agency just this morning gave it its blessing.

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Trading Boeing Stock

Daily chart of Boeing stock.

Daily chart of Boeing stock.

If investors truly are looking forward, perhaps Boeing can put 2020 behind it and continue moving higher.

In December, Boeing was running hard, clearing the June high near $234. Since then, it has been sinking. On Wednesday it hit its lowest level since November as it lost the 100-month moving average.

Now the stock is coming up on an important area. Between $186 and $188.50, it has the 100-day moving average, the 38.2% retracement, VWAP support and one of its two gap-fill levels from November.

Should this area fail to support Boeing, the 200-day moving average is in play, followed by a second gap-fill level near $158.50.

If support holds, bulls eventually need to see Boeing stock reclaim the 100-month moving average and the 21-day moving average. Above puts the 50% retracement back on the table.

That’s followed by the $230 to $235 area and the December high up near $244.