Boeing Co (BA) - Get Report is flying too high to be sustained! At the end of 2018, Boeing closed at $322.50, which resulted in an annual value level at $302.60, a semiannual pivot at $323.80 and a quarterly risky level at $422.99. As 2019 began, the stock traded as low as $309.40 on Jan. 3, within my $323.80 to $302.60 buy zone. My upside target has been $422.99 so it's time to reduce holdings. This week's risky level is $454.14 which is the upper boundary of a sell zone.

Boeing is a component of the Dow Jones Industrial Average and is by far the best performer so far in 2019. The stock closed Monday at $426.87 up 32.4% so far in 2019. Monday's high at $429.92 is a new all-time intraday high. The stock traded as low as $292.47 on Dec. 26, which was a "key reversal" day, which typically marks a tradeable bottom. Boeing closed Dec. 26 at $313.93, well above the Dec. 24 high of $303.00, which defines the "key reversal". The stock is 46% above its Dec. 26 low.

In recent months, Boeing has experienced some flight-safety issues. At the end of October, a brand-new Boeing 737 MAX 8 crashed 13 minutes after takeoff. This was in Indonesia, where a Lion Air jet dropped 726-feet in 21 seconds to its demise. Just last week an Amazon Prime cargo jet crashed in Texas. This was a twin-engine Boeing 767. These and other close-calls are reasons to be concerned about sustaining a solid order flow and future orders. Investors should keep an eye on these safety concerns.

The Daily Chart for Boeing

Image placeholder title

Courtesy of MetaStock Xenith

Boeing shows that the stock set its 2018 high of $394.28 on Oct. 3 then declined 25.8% to its Dec. 26 low of $292.47. This bear market was reversed on Dec. 26, setting the stage for a tradeable rally as this day was a daily "key reversal". The close of $322.50 on Dec. 31 was the input to my proprietary analytics and resulted in two of the four horizontal lines on the chart. My semiannual and annual value levels are $323.80 and $302.60, respectively, with my quarterly risky level at $422.99. The Jan. 31 close at $385.62 resulted in a monthly value level at $359.36. My weekly value level is $454.14.

The Weekly Chart for Boeing

Image placeholder title

Courtesy of MetaStock Xenith.

The weekly chart for Boeing has been positive since the week of Jan. 11 with the stock now above its five-week modified moving average of $392.64. The stock is well above its 200-week simple moving average or "reversion to the mean" at $222.42 last tested during the week of Feb. 26, 2016 when the average was $115.75. The 12x3x3 weekly slow stochastic reading is projected to rise to 91.49 this week up from 87.74 on Feb. 22. This reading is above the overbought threshold of 80.00 and will move above 90.00, which I describe as an "inflating parabolic" bubble, which is reason enough to lock-in a portion of the 32% to 46% gains since Dec. 26.

Trading Strategy: Buy weakness to the 200-day simple moving average at $354.78 and reduce holdings with the stock between my quarterly pivot at $422.99 and this week's risky level at $454.14.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.