Boeing for 5/06/2019

#Nasdaq #CAC40 As the US President is visiting the UK, it made sense to review the maker of the aircraft in which he flies the world. If only the UK still had an indigenous maker of commercial jets, our PM could be poncing around the British Empire in an elegant DH Comet. Or half a Concorde (it was 50% French)!

As the throwaway headline above from Google News highlights, Boeing (currently trading at 343) do not need seek problems at present but their share price is proving fairly resilient – so far anyway. We do have issue with movements this year as they suggest a future descent below 330 shall attempt a landing down at 317. We expect any bounce from this level to prove short lived as there’s a heck of an argument favouring 275 as bottom. Hopefully.

A glance at the chart immediately throws up issues with an ambition at 275.

Firstly, and quite importantly, in the event 275 makes an appearance, the share will have broken the uptrend since 2016.

Secondly, and very importantly, if 275 appears, it presents a “lower low” in the grand scheme of things, taking the share into territory where a long term logical bottom is down at 175.

Third (this one is obscure) the visuals indicate the share price has now real “history” at 275. This is the sort of thing, when if a share has previously hit a high (or a low) there will be ample reason to anticipate market activity when it next revisits such a level. The best we’ve got is a couple of days in December 2017 when the price hit this level and basically did nothing interesting. We’d be hard pushed to invent a reason why this will prove important.

Collectively, the foregoing encompasses sufficient reason to distrust 275 if – and only IF – it makes an appearance. Do remember none of our criteria are yet present to justify such a dollop of misery for the future.

We suspect the circled area on the chart represents Boeings most recent aircraft incident. It feels very like the market decided, “okay, let’s start a new trend” at this point and thus, we’ve painted a Blue line. At present Boeing require better 358 just to indicate the potential of a climbing cycle to 386. If we adhere to our demand for “higher highs”, only above 365 does it actually become safe to believe in 386 as a future potential. Secondary, if such a level exceeded, calculates at an improbable 429.

We deem this improbable as it takes the price above the circled area on the chart, carrying a subliminal suggestion all is okay again in Boeings world.

For now, we’re just not sure the market has figured out a plan for this aircraft maker as the share price is on a wing and a prayer. (sorry, couldn’t resist)

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:09:12PM

BRENT

61.24

               

10:10:45PM

GOLD

1325.46

               

10:13:38PM

FTSE

7228.28

               

‘cess

10:16:36PM

FRANCE

5275.3

5189

5178

5144

5241

5279

5286.5

5332

5250

Success

10:25:12PM

GERMANY

11992.71

               

Success

10:29:02PM

US500

2808

               

Success

10:32:05PM

DOW

25408

               

Success

10:34:07PM

NASDAQ

7202

7124

7095.5

7060

7180

7202

7207.25

7246

7131

‘cess

10:36:49PM

JAPAN

20726

               

Success

 

4/06/2019 FTSE Closed at 7214 points. Change of 0.42%. Total value traded through LSE was: £ 6,134,245,943 a change of 11.89%

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