Stock of the day: Boeing
04 June 2024
In today's stock of the day, I would like to discuss Boeing. It's well-known that Boeing has faced significant challenges recently, which is evident from the steep decline in its stock price. However, there is a glimmer of hope from a technical perspective. The chart shows an inverse head and shoulders pattern highlighted in yellow, a bullish reversal pattern suggesting the potential for an upswing and the start of a new uptrend.
For this pattern to activate, the price needs to break above the neckline, marked in black. A daily close above this level would be a signal to go long, confirming the formation. The initial target could be the 38.2% Fibonacci retracement level, which previously served as strong support in June and February. However, the head and shoulders pattern suggests a more significant upside potential, possibly reaching the 50% Fibonacci retracement level.
Traders should watch closely for a breakout above the neckline to confirm this bullish scenario. If the pattern holds, Boeing could see a substantial recovery, providing a handsome reversal opportunity for investors.