BOEING back to the POC around $153 or lower
Boeing is looking weak at the moment, and eyes are definitely on the $153 area or below where previous POC (point of control was established)
Reasons to consider BA keeps heading sound.
1. 737 MAX grounding: This is a major issue. The 737 MAX is a Boeing aircraft model that was grounded worldwide in 2019 following two deadly crashes attributed to a faulty flight control system, the MCAS. The grounding significantly impacted Boeing's finances and reputation. While the plane has since been cleared to fly again after modifications, the accidents and grounding cast a long shadow.
2. Scrutiny over production practices: Following the 737 MAX crashes, there were concerns raised about Boeing's production practices and its relationship with the Federal Aviation Administration (FAA), the agency responsible for certifying aircraft safety. Government hearings investigated these concerns, with allegations of Boeing prioritizing speed over safety in getting the 737 MAX to market.
3. Continued impact on orders and production: The fallout from the MAX grounding and production issues has led to airlines delaying or cancelling orders for Boeing aircraft. This has slowed production and further strained Boeing's finances.
4. Increased competition: Airbus, Boeing's main competitor, has benefited from the 737 MAX grounding, capturing new orders and market share.
Lastly, their move today to shift their offer for SPIRIT to mostly stock from cash indicates the company is feeling pressure and its being shown in the chart.
Reasons to consider BA keeps heading sound.
1. 737 MAX grounding: This is a major issue. The 737 MAX is a Boeing aircraft model that was grounded worldwide in 2019 following two deadly crashes attributed to a faulty flight control system, the MCAS. The grounding significantly impacted Boeing's finances and reputation. While the plane has since been cleared to fly again after modifications, the accidents and grounding cast a long shadow.
2. Scrutiny over production practices: Following the 737 MAX crashes, there were concerns raised about Boeing's production practices and its relationship with the Federal Aviation Administration (FAA), the agency responsible for certifying aircraft safety. Government hearings investigated these concerns, with allegations of Boeing prioritizing speed over safety in getting the 737 MAX to market.
3. Continued impact on orders and production: The fallout from the MAX grounding and production issues has led to airlines delaying or cancelling orders for Boeing aircraft. This has slowed production and further strained Boeing's finances.
4. Increased competition: Airbus, Boeing's main competitor, has benefited from the 737 MAX grounding, capturing new orders and market share.
Lastly, their move today to shift their offer for SPIRIT to mostly stock from cash indicates the company is feeling pressure and its being shown in the chart.
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