Boeing (BA) Confirms A Double Bottom | The Mesh Report

Boeing (BA) Confirms A Double Bottom

Christian Tharp, CMT November 14, 2022 Comments Off on Boeing (BA) Confirms A Double Bottom

The Boeing Co. is an aerospace company, which engages in the manufacture of commercial jetliners and defense, space, and security systems. It operates through the following segments: Commercial Airplanes, Defense, Space and Security, Global Services, and Boeing Capital.

Take a look at the 1-year chart of Boeing (BA) below with the added notations:

Chart of BA provided by TradingView

Like most stocks, BA had been trending lower for most of the year. However, since bottoming in June, the stock has formed a second bottom under the key level of $174 (blue). The double bottom pattern (green) appears to have been confirmed after last week’s break of $174, and that could mean much higher prices for BA.

The Tale of the Tape: BA has confirmed a double bottom price pattern. A long trade could be entered at or near the $174 level with a stop placed under that price of entry. If $174 were to fail to hold, the forecast for higher prices could be negated.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…

Good luck!

Christian Tharp, CMT


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