Stock of the day: Boeing
05 June 2023
Let us kick off this week with an analysis of Boeing whom we previously discussed at the end of May. Back then, the situation was far from ideal for the buyers, as we had a real chance of a major signal to sell. Despite that, we still saw the light at the end of the tunnel and proposed an action plan in the bullish scenario. This is how we concluded the previous piece:
“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.”
Boeing went for the second option, created a proper bounce off the lower line of the triangle and surged higher. Last week ended with the price testing the upper line of the formation and we are yet again presented with two options. A bounce will keep the price in the sideways trend; and a breakout will give a proper signal to buy. In the current situation, I believe that second option is more probable.