Boeing (BA) Price Forecast: Bull Trend Faces Key Support Test

Bull Trend Intact Despite Pullback

Shares of The Boeing Company (BA) confirmed a continuation of its bull trend in mid-January with a weekly close above the prior high of $242.69. A new high for the trend was reached at $254.35 two weeks later, resulting in the current bearish correction for the stock. The high ended a 16-week advance of $77.58, or 43.9%. As a result, a pullback and digestion of gains is healthy for the trend. Once the correction is complete, the larger bull trend is anticipated to reassert itself.

Two weeks ago, a lower swing high at $247.86 was established. On Monday, a bearish continuation triggered with a drop below an interim swing low at $228.96. Potential support near the 10-week average failed on Friday with a weekly close below that indicator.

Downside Targets and Support Zones

There are several price zones identified on the chart that mark support areas as price continues to weaken. The lowest potential downside target looks to be the bottom uptrend line of a trend channel. There is the confluence of two indicators at $207.12-$206.33, which can currently be used as a proxy for the line.

With that in mind, let’s consider higher potential support areas. This starts with a price zone from $225.56 to $224.58, consisting of prior structure and the 38.2% Fibonacci retracement, respectively. There is also a 100% target for a small falling ABCD pattern at $222.68. That lower level can be considered the lower end of a potential support range from $225.56 to $222.68. Subsequently, there is the 50% retracement and 127.2% ABCD pattern projected target at $215.83-$215.46. These are confluence levels.

Key Moving Averages to Watch

There are also two key moving averages on the weekly chart to watch. The 20-week moving average, now at $218.63 and rising, was reclaimed in December. It is now experiencing the first pullback toward the average to test it as support. The first test is typically met with support, at least initially. Additional signs of bullish follow-through should then be seen for confirmation of strength. If the indicator fails as support, the lower and rising 50-week average at $210.87 becomes a downside target.

Given the overall bullish pattern in BA, strong support is anticipated near the 20-week average, if not encountered previously at higher prices. The 20-week average is consistent with the 200-day average at $217.63 on the daily chart.

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