Boeing Co. (NYSE:BA) is navigating some serious turbulence this year, with the stock down 31% YTD. But amid FAA inspections, halted test flights and regulatory headwinds, could the technical indicators be hinting at a turnaround?
Let's buckle up and see where the charts are pointing.
FAA Inspections & Mid-Air Drama – Boeing's Latest Woes
It's been a rough flight for Boeing lately. The FAA is mandating inspections on 158 U.S.-registered 787 Dreamliners after a shocking midair dive left over 50 passengers injured. The culprit? Uncommanded seat movements causing autopilot disconnection. It sounds like a plot twist from a disaster movie, but it's real. And if that wasn't enough, Boeing has also halted test flights of its 777-9 due to an engine component issue.
The FAA's airworthiness directive doesn't just ground Boeing's reputation – it could hit the company's bottom line. Inspecting seats on a global fleet of 737s and 787s is no small task. With a history of "unauthorized production work" still looming, Boeing's wings may be clipped for now.
Read Also: What's Going On With Boeing Stock Premarket Tuesday?
Can Technicals Lift Boeing's Stock From Its Descent?
Despite the storm of bad news, Boeing's technicals are flashing mixed signals.
Chart created using Benzinga Pro
The stock price of $177.50 is still above its eight and 20-day simple moving averages (SMAs), a bullish signal for the short-term that would make even the most cautious investor take notice.
But before you get too excited, there's turbulence ahead. Boeing stock's 50 and 200-day SMA stands at $179.30 and $197.07, well above the current price – a clear bearish signal over the medium to long term.
Chart created using Benzinga Pro
The Moving Average Convergence Divergence (MACD) at -1.87 is raising concerns, while the RSI at 54.04 suggests Boeing is in a neutral zone, with no immediate signs of being overbought.
Bollinger Bands: A Squeeze Of Optimism?
If there's a silver lining, it might just be the Bollinger Bands. With bands set between $160.52 and $193.73 and Boeing stock crossing over from the lower bearish band to the upper bullish band, signaling some potential buying pressure.
However, caution is still warranted—the stock may encounter resistance before any potential breakout.
While short-term technicals are flashing green, the longer-term outlook remains clouded by regulatory issues, halted flights and a year of steep declines. Keep your seatbelt fastened – Boeing's stock might be in for a bumpy ride.
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