Stock of the day: Boeing
The correction on indices is accelerating with S&P 500 trading below the key support and Dow Jones being on the bottom of the long-term sideways trend (symmetric triangle). In these surroundings, I have an interesting situation with Boeing which is actually similar to the one with Dow Jones. Well, BA is actually a significant part of it, anyways.
For Boeing, 2023 has been a long sideways trend locked inside of the symmetric triangle pattern (blue). Most recently, the price has been trading in the lower part of the triangle, restricted by the mid-term down-trendline (red). Yesterday, BA tested the lower line of the triangle, which always rises worries about a potential breakout to the downside.
Wednesday ended with a bounce, but it cannot guarantee that sellers will not attempt to break the lower line of the triangle again. How to trade the current situation? It’s pretty simple - let’s wait for more price action and sell once the price closes a day below the lower blue line; and buy once we see a decisive bounce off this line.