Boeing Breakout Alert (BA)
By Mike Le_11 Aug 2021_10:35 AM EDT
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We'd like to grab your attention to Boeing. We're buying an October Call with Strike Price $250 for ~800$.
Technicals aside, BA has been lagging the SP500 since March this year. As we've seen with WMT, AMD or NUE, underperformance can be a reason to be bullish, as love can come to the rescue. China's recertification will be a very positive catalyst for BA. We already have the B737Max flown to China for this process, the plane took off couple days ago and landed with no problems. The testing will go on for some time, but Boeing management expect this to be done by end of year. Market is picking up this news.
Now let's talk technicals:
Image 1: Reverse Head and Shoulder pattern. The neckline has been broken. Indicates upside.
Image 2: Tom DeMark's 13 Day Buy Countdown. When the 13 count is reached during a downtrend, it indicates time to buy because a bottom has likely been made. Read more about TD Countdown here.
Image 3: Flag pattern built since March. If we take a step back to March, Boeing is up against this giant flag pattern. It likely will face some resistance here, so be careful, but once it breaks, be greedy!
Image 4: Ichimoku Cloud. This is to reiterate our previous statement, that likely there will be some resistance here, so be careful, use 220 as stop loss. Once it breaks the IC and the flag in Image 3, go heavy on this trade.
Price Target 250.
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