Follow-Up; Heads-Up

 

Boeing Economy Class, 1970

Boeing Economy Class, 2024

On Jan 21, 2024 I published chart of BA to this free version of my newsletter and then followed it up a week later. Here is the original post, and the follow-up. 

BA: Good News; Bad News (Jan 21, 2024) 

BA - Daily Trend Model 

The good news: Bottomless orders from Department of Defense. 
The bad news: Planes falling apart and catching fire.
Currently: Sell Signal in front of a 20% deep dive followed by a retracement to the signal line. 
Short Trigger: Reversal back down to take out Jan 16th low @ $199.50.
Short - Aggressive Trigger: Taking out Friday's low  @ $209.23.
Next Target: Oct low @ $176.25

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Last weekend's post suggested BA heading lower, giving alternative triggers for action - link to post. Both key levels were hit as BA had a bad week, dropping from 215 to 205 with an intraday low of 198.32 on Thursday. 

What's next?

BA - Daily Trend Model 

Initial target is the Oct 2023 low of $176.25, a test of which can be seen in the coming weeks. A more speculative price target is the Fibonacci extension levels that lay below last October's lows, between $150 and $100, in a longer term five wave impulse leg bottoming sometime later this year. Out-of-the-money puts expiring in the second and then third quarter have huge potential.  

BA: Current

BA has risen above its trend signal line, currently at $172.00. It will either continue higher in which case a Buy Signal will be generated, which could be a call buying opportunity, or price could be finishing up a Wave (4) retracement before retreating back below that key level in Wave (5) and in which case a fresh Sell Signal will be generated, targeting new lows for the move.