Boeing (BA): Caution Now, Buy Later
Boeing Co (BA) sold off from 108 to 29 and bounced in March. It’s lagged the Dow Industrials since that time but has perked up in recent weeks. Notice how the stock has stalled at resistance in the mid 50s several times and is now trading near that level once again, after a month long bounce. Accumulation has declined significantly this year, although price has risen to a breakout level.
This raises a bearish divergence because the pattern has evolved into a decent looking cup and handle base. You can find another trade setup similar to this one in John Deere (DE). That stock broke out and eased its bearish divergence during the initial phase of the new uptrend. That’s possible here but I prefer long-side exposure when the technicals are firing on all cylinders.
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