Boeing shares experienced a decline of over 2% on Monday following South Korea’s directive to inspect all 737-800 aircraft after a tragic crash involving Jeju Air that resulted in 179 fatalities. Despite this setback, the stock has shown signs of upward momentum since breaking out of a falling wedge pattern earlier this month, accompanied by above-average trading volume, indicating a potential bullish reversal.
Investors are encouraged to monitor key price levels on Boeing’s chart. Resistance areas include approximately $192, where the stock may encounter selling pressure, followed by levels at $243 and $270, which were identified as significant points based on historical price movements. On the support side, a critical level to watch is around $140, which aligns with the lower trendline of the descending wedge pattern.
Overall, Boeing’s stock has faced considerable challenges this year, losing about a third of its value. However, it has recently shown a modest recovery of 14%. The company has been dealing with various quality issues and capital-raising measures to maintain its investment-grade credit rating, amidst operational disruptions including strikes.
While the recent news has impacted the stock’s performance, its position above the 50-week moving average suggests potential buying interest. Additionally, the Relative Strength Index (RSI) indicates improving price momentum, marking its highest value since January. As the situation evolves, investors are urged to remain vigilant regarding both the resistance and support levels on Boeing’s chart.