BA
BOEING: FUNDAMENTAL ANALYSIS + PRICE ACTION |SHORT VIEW 🔔After a significant portion of commercial airplane orders faded in 2019 and 2020, Boeing began to rebuild its production backlog in 2021. The aircraft producer has reported positive net orders for six straight months. The company will likely prolong that sequence to seven months when it announces its August order activity next week.
However, compared to Airbus, Boeing's order book still looks pale due to the A320neo family's advantage over the 737 MAX. This week, Airbus received an important order from Jet2.com, an old-time BA client, a British travel airline. This setback underscores the fact that the U.S. aerospace giant is still struggling.
In recent years, Airbus has persistently kept an advantage over Boeing in terms of orders, especially in the narrow-body segment. But the gap widened when Airbus bought a majority stake in the CSeries aircraft program - now known as the A220 - in 2018, and widened productively after the Boeing 737 MAX was banned from flying two years ago.
As of the end of 2015, Boeing had 4,392 firm orders for the 737 family, while Airbus had 5,535 direct orders for the rival A320 family. This gave Airbus a 56% share of orders for narrow-body aircraft between the two leading aircraft manufacturers, a substantial benefit but merely an authoritative position. Two years later, Airbus' share has risen to 57%.
But by the end of July this year, orders for Boeing's narrow-body aircraft had dropped to 3,314, largely because a string of orders for the 737 MAX had faded over the past couple of years. Meantime, Airbus ended the month with 6,100 firm orders for narrow-body aircraft, with the A320neo family accounting for more than 90% of that portfolio. That brings Airbus' share of orders for the two competitors' narrow-body aircraft to 65%.
For most of its history, Jet2.com has operated exclusively Boeing aircraft. Today it has about 90 aircraft in its fleet, almost all of them Boeing 737s.
Last year, however, Jet2 tried leasing an A321. Apparently, the leisure-oriented airline liked what it saw. On Tuesday, Jet2 and Airbus announced that the airline had placed a direct order for 36 A321neos with options for 24 more. That proved initial Reuters reports that Jet2 was on the verge of switching to Airbus. Jet2 said the planes would be delivered within five years, through 2028.
Airbus probably offered big discounts to poach Jet2 from Boeing. However, the A321neo's superior capabilities over the 737 MAX 9 and 737 MAX 10 gave it the opportunity to win this business. Jet2 will equip its A321neo with 232 seats, slightly more than the 737 MAX 10's maximum capacity of 230. In addition, the A321neo can operate from shorter runways than the 737 MAX 9 or 737 MAX 10, giving Jet2 more operational flexibility.
Jet2's decision to replace dozens of Boeing aircraft with the A321neo shows that Airbus continues to hold the advantage in this rivalry.
Of course, Boeing still has a solid backlog for the 737 MAX and continues to receive new orders from several key customers. On the other hand, Boeing will need to significantly increase order volume to support a sustained return to peak production rates. Furthermore, heavy reliance on a few customers has its drawbacks. First of all, large customers tend to accept the biggest discounts, which affects margins.
There is no doubt that Airbus is not going to make life easy for Boeing. The European aircraft manufacturer plans to increase production of the A320neo family to a record high by mid-2023, with a subsequent increase in production through 2025. It will open up additional slots for deliveries, preventing Boeing from getting default orders as a result of Airbus' larger backlog.
The 737 family of aircraft has been a real financial trough for Boeing in the past. The huge global oversupply in the widebody market will make the 737 MAX even more important in the near term. Unfortunately, over the next decade, Boeing will likely have to build the 737 MAX at a slower pace and at lower margins than investors anticipated just several years ago. As a result, Boeing stock will be grounded for some time.
BA needs to Bounce and Soon!Unpopular Opinion
BA
- Looks weak.
- Needs more good news and less bad news. :rolling_eyes:
- Needs to stay above the moving averages.
- Could drop to $202
- Worse: Could drop to $192.65
- Worst: Could drop to close the gap near $158.10 (Market would literally have to crash. Seems less likely.)
I'm not posting this to discourage...just keep your eyes open. BA is the government's baby, they won't let it die...plus there are bulls waiting at multiple levels below. Keep this in the back of your mind just in case. It's September and if it's like the last couple of years, the market will slow down and eventually turn into "Red October."
Meanwhile, trade the trend lol
BA $240 moving to in short term BA Current Price $221 Price Target $240
Option - $220c 9/10 ($568,1.7% till breakeven)
After reporting their first profitable quarter in 6 quarters I believe now is the time to add some BA to your portfolio. FDA approval for COVID vaccines coming in just last week shouldact as a tailwind for the travel sector and especially Boeing. In June, Boeing booked defense contracts valued at $1.1 billion. The contract flow was carried by orders for the CH-47 Chinook and the AH-64 Apache. Seemingly, July was even better in terms of contract value. There was a fear out there that BA may see a decline in defense spending due to changes in administrations as we went from the trump administration to the Biden Administration but that is simply not taking place, defense contracts have been very strong for the company. Looking at the chart I believe we will trade up to the top line of resistance around $240 over the coming weeks.
BA Support!Money Makers!
BA is currently trading in a channel on the Daily TF. It's found support on the trendline shown and can begin to move higher like it did in the past. If this trendline fails expect a move to the bottom of the channel shown in yellow. If you're going long remember to use a tight stop-loss.
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Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect!
This is not financial advice.
Simplicity Wins
$BA | WEEKLY WATCHLISTLoving this setup going into the week, I entered a swing position last Friday near open. Already up in decent profit. As long as the lows hold around $216, we should expect an impulsive move up to the $230-231 region. Ultimately looking for $238-241 to completely take profits on my swing, but that may take a little longer.
BA Should Move Higher Here Boeing just reported its first profitable quarter in 6 quarters, we should continue to see Boeing report profitable quarters given the emergence of air travel that has taken place over the past couple months. Also, if your an investor that is worried about a slow bounce back in travel due to the delta variant, you should take comfort in the fact that 40% of boeing's revenue its defense business which has held strong during the entire pandemic.On Friday after the market was closed Boeing was awarded a $487m contract from the US Army for Apache AH-64 engineering services and technical support.
Trading Plan on Boeing, 101 explanation.Hello guys! today we will analyze BA. We are planning on developing a setup here, and we want to explain the full idea.
The first thing we should see is the big picture: We have a broken descending trendline with a massive corrective pattern on the edge of it. If you check the logarithmic chart on the weekly timeframe, you can see that this situation has happened a lot of times in the past
Based on the research we made, one of the ways of trade this situation is waiting for the breakout of the big correction on the edge of the descending trendline and look for a smaller correction to trade. This provides us with a big risk-reward ratio that also allows us to fail many times until we hit the correct setup. Based on historical data, this setup has a success rate of around 55% and an average risk-reward ratio above 3, which is something PHENOMENAL!
The target we will be using is the higher part of the expanding channel.
What happens if the setup nothing happens? Beautiful answer for that: You don't trade
What happens if the price executes the setup and then it goes straight to the stop loss area? Another beautiful answer for that: you lose 1%, no one has died because of that.
Thanks for reading, guys! If you have any doubt about this or any vision you want to share, just write it in the comment box. Have a good one.
$BA | WEEKLY WATCHLISTThis has been swinging around and consolidating since March, very frustrating. However, I believe there is some light ahead of us. Patience is key for this one and will pay off. Sitting on major trend line support and expecting a bounce. Conservative target zone marked around $237-241. Next target above is around $264.
BOEING - THE SETUP TO 300'SBoeing shocked everyone today with a surprise beat on earnings. Here is the setup as we can now say that ABC correction wave has ended and we're now on the way to completing the major 5 wave but in the midst of the minor 1 wave.
236.21 is a major Volume distribution zone and if above, I think we can see 244-245. Depending on where this correction occurs, I plan to enter again on the minor wave 2 down which should retrace around 50-62% (on average) of wave 1 length. From here we can begin our journey into the upper green box (green box will change depending upon the length of wave 1 and pullback % of wave 2) - This is merely a projection right now.
#Boeing #BA
BA Play 7/28Boeing I believe goes lower towards the 200-190 range.
Can't be long on this name while its taken down production lvls and airfares are at 50% of what they used to be from last year . There's better places to put your money than Boeing right now and investors will come fleeing back once it goes back to 194.
You can scalp with those lvls given for tmrws intraday session . But longer term I'm short on the company.
BA Boeing Looks like it might actually surface above the clouds.Looks like a good place to get in on BA it has seen some pretty rough days here latley. It just hit absorption or atleast attempted to so we should see 3 bounces off of that and then volume should start to decrease as price increases.
by iCantw84it
07.20.2021