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Buy the Deep Value in Boeing Stock or Pass Due to Ongoing Issues?

Boeing is moving lower on earnings, disappointing the bulls. Here's what the charts look like now.

Boeing  (BA) - Get Boeing Company Report remains a red-hot debate even as we're on the verge of it being two years since the start of the Covid-19 pandemic, at least in the U.S.

The airlines have been crushed, as have travel trends. And thus, it’s no surprise that Boeing has been hit hard too.

Despite the booming Covid case count due to the omicron variant, the airline stocks actually held up pretty well until recently.

Boeing stock was also trading pretty well, but it’s now working on its seventh straight lower close. At this week’s low, the stock was down over 16% from last week’s high.

Bears will argue that it will be years before the global travel trends return to normal and even longer before the airlines are in a position to start placing significant orders for new jets.

Bulls will argue that we’re well past the trough of the pandemic, as well as the travel-crushing consequences. As a result, Boeing stock is a great value near current levels, particularly given that it runs a near duopoly on the industry (along with Airbus).

That said, the company did book a massive loss in the most recent quarter, which is rubbing investors the wrong way today, and with good reason.

Trading Boeing Stock

Weekly chart of Boeing stock.

Weekly chart of Boeing stock.

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You’ll notice that even before this latest spill, Boeing stock has struggled with the 50-week moving average, as well as the $230 area.

That’s been the case for months and in fact, really for all of the fourth quarter.

Breaking below the $205 to $207 area, investors find Boeing stock below the 10-week, 21-week and 50-week moving averages. The stock is also below the $200 level.

That leaves the stock in an interesting area, as Boeing struggles to find its footing.

If Boeing can reclaim $200, then the $205-ish area will be back on watch, but it’s really the 10-week and 21-week moving averages that it needs to reclaim.

Below those marks and the trend remains unfavorable for the bulls. Above them could put the 50-week moving average and $225 back in play.

On the downside, there was clear support in the mid-$180s, while the December low sits down at $185.26.

Can bulls get an undercut of this area and some sort of reversal to the upside?

That would be one potential outcome, at least on the downside. Another would be for a larger decline, potentially down toward the $158.50 gap-fill level.