BA slides to lowest close since June 2nd
The Boeing Company (BA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BA ended the month -13.8% lower at 158.00 after losing $3.95 (-2.44%) today, notably underperforming the Dow Indu. (0.44%). Today's close at 158.00 marks the lowest recorded closing price since June 2nd. Closing below Thursday's low at 160.64, the stock confirmed its breakout through the previous session low after trading up to $4.38 below it intraday.
Daily Candlestick Chart (BA as at Jul 31, 2020):
Friday's trading range has been $7.14 (4.42%), that's slightly above the last trading month's daily average range of $7.05. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BA.
After trading as low as 156.26 during the day, the share found support at the 100-day moving average at 156.50. The last time this happened on July 8th, BA actually lost -3.78% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 175.33.
The Boeing shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test June's close-by low at 144.55.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The Boeing. Out of 119 times, BA closed higher 53.78% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.30% with an average market move of -0.23%.