Even if DaBoyz succeed in pneumatically hoisting this stock with ropes and pulleys above $400, a key psychological level, it looks like BA will need to go lower first to get a running start. Holding the stock aloft in order to distribute shares to widows and pensioners has taken enormous effort that has been aided by a heroic boost from Boeing’s ignorant, lazy, ne’er-do-well lackeys in the news media. Whatever you hear from them, however, this company has big problems. Here’s another link to that VOX.com investigative piece to refresh your memory as to how serious those problems are.
From a technical standpoint, I must concede that BA has yet to generate a bearish impulse leg on the daily chart. That’s because the 2019 rally was so steep that it left no ‘external’ lows on the chart that we might have used to qualify a true bearish impulse leg. As a practical matter, though, the ‘ersatz’ impulse leg we’ve got yields a pattern with a 356.42 midpoint and a 314.18 ‘D’ target that are good enough for government work. For now, use the higher as a minimum downside target for the next 3-5 days. _______ UPDATE (Apr 16, 5:45 p.m.): This dog and pony show projects to 387.54, or perhaps 389.77 if any higher. However, the stock’s clever handlers will need to goose shorts above the 402.67 ‘external’ peak shown here to turn a stage-managed bounce into the real McCoy. That would imply a rally powerful enough to fill the gap between 402 and 415 created when a 737 Max crashed on March 11.