BA – Boeing Co. (Last:350.26)

I’ve revised my bearish target slightly, since using overnight price bars yields a pattern with two bounces precisely from the pattern’s 340.48 Hidden Pivot midpoint. This has validated the new pattern and its target, making them both even more reliable for purposes of trading this vehicle. The new target lies at 315.95, and it will be in play as soon as the stock closes below the 340.48 midpoint support for two consecutive days. This seems very likely although it could take time, since Boeing’s institutional sponsors will do everything they can to avoid marking the stock down further in order to distribute it. It has been quite resilient so far, even as a deepening scandal involving two fatal 737 Max crashes has grown more embarrassing. _______ UPDATE (Jun 3, 9:555 a.m. ET): Sellers have crushed the 340.48 pivot, all but guaranteeing a fall to at least p2=328.21. _______ UPLOAD  (Jun 4, 5:33 p.m.): If the short-squeeze pushes the stock to 352.74, that would trigger a ‘mechanical’ short, stop 365.01. Here’s the chart. _______ UPDATE (Jun 5, 5:38 p.m.): A sharp rally triggered the short. I’ll track it if I hear from at least two subscribers who did the trade. [Late note: I didn’t.]