Boeing () - stock has been sick for a long time. Will it change when the aerospace company announces earnings before the opening on Wednesday?
The bulls anticipated that "this time would be different" due to a variety of travel-related optimism, and that the group would see a long-term increase in Boeing.
Over the past year, the Boeing stock has experienced strong gains. There were moments where it appeared as if "this is it!" as the stock was finally trading better.
Whether it was concerned about one of its models, news about his leadership, its quality, or a warrant update, Boeing found a way to fail.
Boeing's bulls have grown by the use of strong cash flows and their ability to be a member of a duopoly in the passenger-jet business.
Those discussions aren't holding up anymore, especially after the company's 737 Max debacle and its more unstable financial sheet. And even if airlines like United Airlines () are out with, Boeing stock hasn't been able to rally.
It's strikingly on the verge of achieving fresh 52-week lows ahead of its earnings report.
Boeing's stock is being traded.
Boeing's stock is ranked hebdomado.
TrendSpider.com has provided a chart.
I have been charting Boeing stock for a long time. And for over a year this gap-fill level has made me wonder if it will ever be filled.
Boeing climbed higher on November 9, 2020, gaping up about 13% and beginning a multiweek upside rally. Despite that being a powerful move, it left a gap at $158.47, a concern that has not been filled for the past a year and a half.
We now need to consider whether a move lower may be in order, with the earnings report looming and the stock trading at 52-week lows. After all, United Parcel Service UPS stock tip has dropped.
A look at the chart reveals a few more key measures approaching the gap-fill mark. I'm examining the 61.8% retracement less than $3 away at $161.41. I'm also looking at the 200-month moving average, which is admittedly a bit further away, from $146.
On a bearish post-earnings reaction, all of these measures make me wonder if we could see a reduction down to the $150 area.
If this area fails and that's a big "if" considering we don't even know whether this zone will be tested then the $125 to $130 area will be on hold.
On the upside, active resistance has come from the weakening 10-week moving average.
Right now, this measure is right at the bottom of the previous support zone, from $183 to $188. If Boeing clears the 10-week, see if it can clear $188. If it can do that, the 21-month moving average is on the table.