Boeing the Obvious Loser of a Trade Skirmish
Updated
I hope everyone has had a solid week. I was doing some end of week checks and I think that this is a great trading idea based off the latest trade skirmishes between the United States and, well, everyone.
Boeing is a developer and manufacturer of airplane and airplane parts, and gets a a fair bit of business from China (10%, give or take, of its total revenue).
With the latest threat of trade war I decided to pull up the technical anaylsis here and I I think this is a wonderfully interesting chart.
As you can see, investors have priced in the possibility of a trade war in the stock already. However, if you look at how the stock itself was performing, I feel there could be further pressure down. There are multiple levels of support in the Fib sequence, and you can see that it has found one here. If this breaks, however, there could be extreme downside pressure which could possibly lead the price down to the last Fib level.
For those who are in the mood for a high-risk/high-reward trade, if the stock pierces the current Fib level where it has found support significantly, this could be a wild ride straight down.
Insider transfers and institutional transfers are also both down, (-8.7% and -2.76%, respectively).
The only issue is there is high short interest, which could easily cause a short squeeze.
Overall, if you love high-risk versus high-reward, this is a great trade for you.
Boeing is a developer and manufacturer of airplane and airplane parts, and gets a a fair bit of business from China (10%, give or take, of its total revenue).
With the latest threat of trade war I decided to pull up the technical anaylsis here and I I think this is a wonderfully interesting chart.
As you can see, investors have priced in the possibility of a trade war in the stock already. However, if you look at how the stock itself was performing, I feel there could be further pressure down. There are multiple levels of support in the Fib sequence, and you can see that it has found one here. If this breaks, however, there could be extreme downside pressure which could possibly lead the price down to the last Fib level.
For those who are in the mood for a high-risk/high-reward trade, if the stock pierces the current Fib level where it has found support significantly, this could be a wild ride straight down.
Insider transfers and institutional transfers are also both down, (-8.7% and -2.76%, respectively).
The only issue is there is high short interest, which could easily cause a short squeeze.
Overall, if you love high-risk versus high-reward, this is a great trade for you.
Note
Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate any positions in BA within the next 72 hours.Note
As predicted, Boeing gapped down significantly; but I believe this can move down every more. Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate any positions in BA within the next 72 hours.
Note
There was a breakdown of the Fib level and this has dropped nearly 3% since the call.
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