(12/08/23) Chart of the Week: Boeing

Chart of the Week: Boeing

12/08/2023 10:00 am EST•2 min read •Tickers: BA

President and Chief Options Strategist

Explosive Options

We’re going to be focusing on Boeing (BA), states Bob Lang of ExplosiveOptions.net.

This has been a nice chart over the past month, month and a half. We can see a nice series of higher highs and higher lows. We’ve gone from—in the go-no-go composite of indicators—from purple to pink to amber to teal to blue. This means we’ve gone from bearish to cautious bearish to neutral to cautiously bullish to strongly bullish over here.

Now we recently made a nice move about the 100 and 200-day moving average. The dark line here is the 200; this one’s the 100. We made a nice move above that. We blasted above there last week and have held these highs. The prior day we got a nice upgrade from RBC on Boeing to a buy signal and we have the stock moving up into the $220s over here. Where might it go?

We think the resistance level comes in above here, which comes in at around $237, from back in July. (I’m gonna mark that resistance point up there.) So we’ve got a little bit of room here – about another 5% to the upside.

Indicators Are Also Bullish

We can see that MACD is on a buy signal over here. The TDI, which has been incredible here, is at the bottom here. What is the TDI? That’s the Trader’s Dynamic Index, it compares where relative strength is compared to Bollinger bands, that’s on a strong buy signal.

And we can see as well that the Chaikin Money Flow has been seeing some nice money flows into Boeing over the past month or so too. It could cool down a little bit, sure, but the nice breakout we had this week indicates that there’s probably some more upside to this stock as we move forward.

I’m looking for upwards of $235-237 before it’s over, probably over the next few weeks. I got long some of these calls last week and the prior week. And I’m just going to be waiting this one out.