Boeing stock price forecast: where technicals meet fundamentals
Boeing (NYSE: BA) stock price has made a smooth recovery in 2023 as the company’s era of turbulence end. The stock rose to a high of $222 in February, the highest point since January 31st. It has surged by ~82% from its lowest level in 2022 as it now enters its cruising altitude.
This report will provide a technical outlook of the stock since most of the company’s fundamentals are well-known. They include the return of the Boeing 737 Max, the solution of the Dreamliner planes, and the rising number of orders. Earlier this month, the company, together with Airbus, received hundreds of orders from Air India. It also received a giant order from United Airlines, as we wrote here. Also, Boeing’s defence business is expected to see robust orders a the war in Ukraine continues.
Therefore, there is no major need for repeating all these fundamentals. Instead, I will look at what technicals are saying about the company and the key levels to watch going forward.
Boeing stock price forecastCopy link to section
BA stock chart by TradingView
Turning to the weekly chart, we see that the Boeing share price was in a strong bullish trend for years. At the time, it was seen as a leading blue-chip with an impenetrable moat. This trend ended in 2019 when the shares soared to a high of $435. It moved ahead and collapsed to a low of $86.43 during the pandemic.
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The stock has formed two double-bottom patterns. The first one, which is shown in black, connects the lowest point in March 2020 and June 2022. Its neckline was at $278. The other smaller double-bottom happened on June 13 and October 3 2022, with its neckline being at $173.68. In price action analysis, these double-bottom patterns are usually a bullish sign.
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Boeing stock price remained stuck at the 200-day moving average. Therefore, the shares will likely continue rising as buyers target the neckline of the larger neckline at $278. This price is about 34% from the lowest level. A break above this neckline will push it much higher.
Boeing share price technical analysisCopy link to section
The daily chart shows that the BA stock price has been in a strong trend. Like the weekly chart, we see that the stock has formed a double-bottom pattern whose neckline was at $173.80. The stock has formed a golden cross since the 50-day and 200-day moving averages have made a bullish crossover.
The stock has jumped above the 50% Fibonacci Retracement level. Therefore, the stock has more upside in the coming months, If this happens, the initial level to watch will be at the 78.6% retracement level at $243. In the near term, we could see a pullback to the support at $173 in a break and retest pattern.