How to Trade Boeing's Shares After Their Run So Far in 2015

NEW YORK (TheStreet) -- If you missed an early 2015 entry on Boeing (BA), there is still time to get in as a buying opportunity is in the making.

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), iShares Transportation Average ETF (IYT), American Airlines (AAL), Delta Air Lines (DAL), JetBlue (JBLU), Southwest Airlines (LUV) and United Continental (UAL), 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.

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