Boeing (BA) shares surged on Wednesday, marking their largest one-day gain since 2023, following optimistic comments from the company’s chief financial officer, a new aircraft order, and a positive deliveries forecast from analysts.
At an industry conference, CFO Brian West reassured investors that Boeing expects no immediate impact from the Trump administration’s tariffs on aluminum and steel, adding that the company’s cash burn is decreasing in the current quarter. The stock received an additional boost when Japan Airlines announced an order for 17 new 737-8 aircraft, complementing a similar order placed in March 2023. Bank of America analysts further supported the bullish sentiment, predicting improved deliveries for Boeing in March compared to February.
Boeing shares rose 6.8% to $172.62 on Wednesday, leading gains in both the S&P 500 and the Dow Jones Industrial Average. The rally helped reduce the stock’s year-to-date decline to 2.5%, aligning with the overall performance of the S&P 500.
Technical Analysis: Bullish Trends and Key Levels to Watch
Following a bullish engulfing pattern earlier this month that ended a three-week pullback, Boeing shares have continued their upward momentum. The stock closed above both the 50-day and 200-day moving averages on Wednesday, and these moving averages had already formed a golden cross early last month, signaling the start of a potential uptrend.
Importantly, the recent move higher was supported by the highest trading volume in over two weeks, indicating strong buying activity from institutional investors and hedge funds. The relative strength index (RSI) also crossed above the 50 mark, confirming bullish momentum.
Support Levels to Watch
The first major support level to monitor is around the $165 mark, where the stock has found support at key troughs in April, August, and January. A drop below this level could bring the stock closer to the $146 region, which aligns with a previous swing low in February and a trough from early October. Investors might view a pullback to this area as a potential buying opportunity.
Resistance Levels to Watch
On the upside, Boeing could face resistance around the $192 level, which aligns with peaks from late March to early August 2023, as well as the recent high from last month. A breakout above this level could pave the way for the stock to test the $217 mark, which is near a horizontal line connecting the late-August 2023 trough and a countertrend high from January 2024.
In summary, Boeing’s strong performance on Wednesday and the positive outlook signal potential for further gains, but investors will need to keep a close eye on the key technical levels of support and resistance to gauge the stock’s next moves.
Related topics:
Australian Dollar Maintains Upward Trend After China’s Economic Data Release
EUR/USD Steady Below 1.0900 Ahead of US Retail Sales Data
Gold Price Retreats After Soaring Past $3,000 Mark Amid Trump Trade Troubles
