Last year, Boeing traded within a fairly narrow range of $121 to $136.30 as the stock finished the year down 5%. The shares broke out of that range after the company reported earnings on Jan. 28, as investors poured in on heavy volume. The stock gapped up in pre-market trading on that day and opened at the top of the trading range at $136.30. The shares then gained 11.5% during the two days following the earnings report on above-average volume.
Boeing's stock stabilized at about $147 and consolidated for a couple weeks. Eventually, the shares climbed to their all-time high of $158.83, which was almost 20% higher since earnings and a 30% increase since December.
Here is a look at Boeing's chart for 2014.
Now, the shares are down 5% from their all-time high and are being offered at a slight discount. Watch Boeing's stock in the coming week to see if it will pull back more to possibly offer investors first-class seats at coach prices.
- Friday's range: $150.45-$151.89
- 52-week range: $116.32-$158.83
- Friday's volume: 4,330,678
- 3-month average volume: 4,892,210
Look for Boeing to trade back to the consolidation level of around $146-$147. Investors may want to enter at this level or wait to see if the stock pulls back to test the $136.30 level.
For the long-term investor, a sell-stop order could be set just below the $136 level, or $121 if you have a greater risk tolerance.
Short-term traders will need the stock to bounce on support, or a price a stock has difficulty falling below, and show a confirmed buy signal on bullish strength. Target the all-time high of $158.83, as there is no resistance, or a price a stock seldom moves above, above that level, which traders call "blue skies".
Meanwhile, J.P. Morgan's Aviation Transportation & Industrials Conference will take place this week in New York. Investors should watch for movement in the transportation sector following the conference.
Charts to watch this week include the SPDR S&P Transportation ETF (XTN) - Get Report, iShares Transportation Average ETF (IYT) - Get Report, American Airlines (AAL) - Get Report, Delta Air Lines (DAL) - Get Report, JetBlue (JBLU) - Get Report, Southwest Airlines (LUV) - Get Report and United Continental (UAL) - Get Report, to name a few.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks or funds mentioned.