Boeing (father) is expected to report fourth-quarter earnings on Wednesday before the market opens. Check out the charts and flight plans for this component of the Dow Jones Industrial Average.
In this Boeing daily bar chart, below, I can see the price rallying strongly since the beginning of October. Price has leveled off and corrected in recent days but remains above the rising 50-day moving average and above the 200-day bottom line. The On-Balance-Volume (OBV) line was launched in January and shows that we are seeing a shift from aggressive buying to aggressive selling. The Oscillator’s Moving Average Convergence Divergence (MACD) has turned lower in January with a peak slightly below the November high of the oscillator. This is a bearish divergence and could foreshadow price weakness in the coming days.
In BA’s weekly Japanese candlestick chart, below, I see a recent top reversal pattern. Candlestick reversal patterns can be from top to bottom or from top to bottom. BA is trading above the bottom-making 40-week moving average. The weekly OBV line has been up since May but is currently pausing very slightly. The MACD oscillator is bullishly aligned above the zero line.
In this daily BA Point and Figure chart, below, I can see that the price has reached and surpassed the price target in the $173 area.
In this weekly Point and Figure chart of BA, below, a price target of $294 is expected.
Final strategy: Boeing has made a strong rally since early October and now prices are showing weakness ahead of Wednesday’s earnings. I don’t know what BA can tell shareholders but I will reduce any long positions before the report.
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