A look at Boeing’s stock before earnings

During Friday crazy money program Jim Cramer told viewers the highlights of his game plan for this week with many major companies reporting earnings. Cramer noted that on Wednesday we will hear from Boeing (BA), Facebook (FB), Ford (F) and McDonald’s (MCD) among others.

Cramer was optimistic about all these stocks, but said Boeing will get worse before it gets better.

Let’s take a look at the charts of this aerospace giant and its Dow Jones Industrial Average (DJIA) component.

In the BA daily bar chart below, we can see that the stock rallied to a high in March and has corrected lower. BA broke the May low and the 200-day moving average rising. BA has moved above the 200-day line again, but is trading below the falling line of the 50-day moving average.

The On-Balance-Volume (OBV) line shows weakness from December and tells us that BA sellers have been more aggressive for several months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and bearish.

BA’s weekly Japanese candlestick chart below shows a mixed to weak picture. Prices are recovering from their March 2020 lows, but have fallen over the past five months to break the upward trend of the 40-week moving average. Lower shadows are not visible during the decline and tell us that prices have not reached a level or area where traders are rejecting the lows.

The OBV line shows weakness from last June/July. The MACD oscillator has been lower since April.

In this BA daily Point and Figure chart below, we see a downward price target in the $201 area.

In this weekly Point and Figure chart from BA below, we see a potential downward price target in the $159 area.

Bottom line strategy: It looks like BA will be a drag on the stock market with downward price targets on both our dot and numbers charts. Avoid the long side for now.

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