The stock is falling on reports about another issue with the 737. However, this time it does not relate to the 737 MAX, which remains grounded until the FAA gives it the green light to resume flight.
Instead, these reports are connected to the 737 NG -- Next Generation -- which is one of the most popular jets in the world.
Boeing reported to the FAA that there has been some structural cracking in the wing support. As of now, the worry is not immense, as indicated by the stock opening near flat and only falling a bit more than 1% later in the day.
However, there is likely some concern that this could balloon into a bigger issue than currently anticipated.
A recent ruling by the World Trade Organization could have implications on Boeing, too, relating to trade between the U.S. and Europe. These additional developments complicate matter for investors, which can give the stock trouble.
Let's look at the charts.
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Trading Boeing Stock
While Monday's developments aren't exactly derailing Boeing, the stock is starting to rollover a bit.
With the decline on Monday, Boeing stock is dropping below the 61.8% retracement and uptrend support (blue line). Bulls will now need to see if the 21-day moving average and prior resistance near $375 can buoy BA stock.
Below $375 likely brings up an important test of the $356 to $362 area. Here Boeing stock finds the 50% retracement, 200-day moving average and 50-day moving average. If all three fail to support BA stock near $360 -- which is also an important range mark on the weekly charts -- then more downside could ensue.
When this area gave way in July, Boeing stock sputtered down to the $320 level before finding buyers and reversing higher.
Below the 50-day, currently at $356 and trending higher, and downside targets shift to $340, then down to the 38.2% retracement at $323.70, should $340 fail as support.
On the upside, look for a move over $393. That could trigger a rally to $400 and eventually a gap fill back over $410.
This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.