BA Forecast and TargetsPoor BA, what a harsh day for it and for the market in general.
Looking at BA on the monthly chart is quiet interesting. We have some ascending support that BA may bounce off of. If that is the case, perhaps we could see a double top form. However, I really don't believe this is likely. We see the very bearish flat top heikin ashi candle has formed for the month and I think we can anticipate a further fall.
Technical levels for BA are displayed in purple along with the corresponding last date BA touched these levels. The technical levels are as follows:
1. 143 - 145: Last bounce November 2020
2. 89-90 (i.e. COVID Crash): Last bounce March 2020
3. 30.53 (i.e. Financial crisis): Last bounce March 2009
I did a simple regression time series model of BA, which BA seems to respond well too (see image below).
Today marked BA 15149th trading day. KUDOS BA!
Applying this model, this week projected lows of around 185 - 194. Pretty close, IMO.
Adjust this for BA's 15160th day of trading (approximately 11 trading days or roughly 2 business weeks), the calculated low is around 147.76.
Very curious. Very curious indeed.
I am inclined to swing a short position with an end of April expiry. However, if we look very briefly at BA on the 1 hour chart, you will notice, it is far too oversold (red arrow).
It does look like BA wants to put the breaks on and do a bit of consolidation as we can see the start of a green candle on the 1 hour chart (yellow arrow). This would ultimately lead to consolidation to stabilize RSI and the formation of a likely bear flag.
I would be looking for consolidation, maybe a slight bounce to enter short.
My thoughts! Not financial advice.
As always, let me know your feedback and comments, etc. etc. Trade safe!