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Boeing Set to Bomb Earnings $BA drop > -7.5%Boeing, as a company has been under an immense amount of scrutiny as the MAX 737 scandal has unfolded over the last year. Yet, the company's stock price has survived relatively unscathed. In Jan '19, Boeing released stellar earnings of $5.63/share, the stock bounced up from $360 to $445 in a little over a month - an increase of 23%. Shortly thereafter, the stock plummeted back to $360 as the drama of the MAX 737 unfolded. Even the relatively good earnings report in Q1 of '19 wasn't enough to help the stock break out of it's range. The best bull market in the last 20 years coupled with earnings in Q2 and Q3 (despite beating estimates by a sizable amount in Q2, and a narrow miss in Q3) still only helped the stock track sideways. The 737 MAX scandal is finally coming home to roost, and the stock is likely to pay the price for it in the coming month. As the chart above shows, the ratio of earnings (in quarters where positive earnings occurred) has steadily increased to 3x the original level scene during the stock's best quarter. A 71% drop in revenues has been followed by a mere 29% drawdown in the price. If the 737 Max problem was squarely in the rear-view mirror, then perhaps a good earnings report could revitalize the stock and reverse the past 3 month downtrend. Based on past price action during earnings, $BA has a major correction coming. With many analysts already saying we are entering a market-wide correction (while some try to hide it behind the coronavirus), any type of market-wide correction would accelerate the sell off. In addition, institutional investors have been liquidating their positions on a 2.5 sell to buy ratio. Here are some price targets: Earnings Beat & Max 737 Cleared to Fly before March (aka...the impossible): +8-10% Earnings Miss & Max 737 Cleared to Fly before June: Flat to +3% Earnings Beat > $3 vs $1.73 est - Max 737 returns to service by summer: -3% to Flat EXPECTED: Earnings Beat < $3 vs $1.73 est & More 737 Runaround: -7.5% Earnings Miss & More 737 Runaround: -8% to -10% Variation to estimates coincide w/ relative market movement overall: Expected scenario: Market up .3-.5% lessens impact of Earnings beat < $3 w/ no definitive date of Max 737 return to service: -7% to -7.2%
NYSE:BAShort
by DontListenToThisClown
1
SOLD MY Boeing position at 325,26 too much downside pressure !! I decided after keeping the stocks a while hoovering the 340 wish limits and making money selling at the money calls I don't think this game is worth it anymore as the downside risk is much greater in the short term especially if the airline scheduled the flight back in June Dont expect the 737 MAX to be scrapped this is too much of a blow politically against one of the US symbol such as Boeing , the 737 Max will fly again But short term I can see the 320 support breaking down so better come back when visibility is clearer , on my watchlist
NYSE:BAShort
by PhilippeDelpCFA
5
$BA is in an important zone$BA has overshot almost every conceivable range in the past few years. Lately, due to time constraints, I have been trying to scope out longer time frame opportunities. So, I'm trying to train myself to start large, zoom in, make assessments, and then be patient for the right opportunity. Starting from a 1M chart, here is what I see: The previous expanding wedge was absolutely smashed to pieces, with $BA soaring from $156 in Dec of '16 all the way to above $400 in the past 4 months. Let me preface the rest of this post with this: I expect $BA to have more of a retrace from these levels, back to the $260 zone in the next 12-18 months. Right now, the monthly RSI is pretty oversold, but that doesn't mean the price has to go up. In fact, a zoom into the weekly tells us the near-term is likely up: Depending on how this weekly candle closes tomorrow, it may be bullish (near term). But I wouldn't expect it to get too far above the 200ema on the 1D any time soon. Note that weekly RSI is also a bit oversold and may be in need of some relief. However, it's important to note the line of support we are teetering on right now. If this line is broken, you can expect some red waterfalls to more stable price levels where buyers will step in. A zoom into the daily time frame shows us very clear indecision in the market - with $BA being range-bound between roughly $320 and $380 since making its massive ascent from the $160 range to above $300 in Dec 2017. I also think it's important to note the symmetry in this structure. On both the weekly and the daily, the first and second half of the range are very similar in structure. Essentially, in the coming months, I will be waiting to see a daily close below this price range in order to go short. If this trade is executed, the price levels I'm targeting are $291 and $265: Will update this idea as time goes on.
NYSE:BA
by UnknownUnicorn3126937
BA - Departure of CEO + Narrowing range = :)Boeing (NYSE:BA) has fired embattled CEO Dennis Muilenburg, who oversaw the company during the 737 MAX crisis. He has been at the helm since July 2015. 4% up on news of CEO departure. Exactly the catalyst needed for a break up north past the narrowing resistance level. Look for break above level 355-360 in coming days. RSI bouncing back from oversold conditions, bollinger bands breaks on BA have historically prodcuced 5-10% rips up. The board decided that a change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," according to a press release. Look to set stop around @ 310, take profit @ 365-370. As always... DYOR.
NYSE:BALong
by Chart-Art
BA - Swing to $350 while still holding longChart and recent movement make me convinced we are headed back to the downward resistance. Always been a BA fan and continue to hold it long while swinging the volatility. BA is a strong company and will be back to ATH before people know it. Discount even at these levels and would still consider picking up shares on any dips. Very optimistic lines drawn of how I think it'll play out till MAX approval but the market is what it is. RSI looks to have bottomed and slowly climbing back up followed by MACD. First PT $345. GLTA
NYSE:BALong
by Slothcharts14
BA Long $334 Area with $3 stoplossBA Long $334 Area with $3 stoploss This stocks been beaten around a lot, we already heard enough news about the 737 max issues, however that's not all BA sell. they have big defense contracts too. i would say this is the area that this stock actually becomes some sort of value. even when we first heard the news last year with lawsuits and everything, it only dropped to around $360 so i think its a bit overbeaten but def be careful with this play. Ba could pay out a lot of we get it right.
NYSE:BALong
by WallSt007