The Boeing Company (BA) stock traded as high as $394.28 on Oct. 3 and then plunged by 25% to its Dec. 26 low of $292.47. Dec. 26 proved to be a daily "key reversal," as the close that day was above the Dec. 24 high. This was the first indication that Boeing could be a winner in 2019.
Boeing shares closed Tuesday, Feb. 5, at $410.18, up 27.2% so far in 2019 after setting a new all-time intraday high of $410.78. The stock is a huge winner, up 40.2% from its Dec. 26 low of $292.47. The stock is not cheap, as its P/E ratio is 24.77 and its dividend yield is 1.72% according to Macrotrends.
Boeing is the largest manufacturer of commercial airplanes and is also a defense contractor and builder of space and security-related systems. Boeing is a member of the Dow Jones Industrial Average and beat analysts' estimates on earnings per share by a wide margin when it reported results before the opening bell on Jan. 30. The stock gapped higher that day and continued higher, setting its latest all-time high of $410.75 on Feb. 5. Boeing stated that it has made investing in a supersonic aircraft a priority in a move to accelerate technology advances in aircraft design.
The daily chart for Boeing
Boeing's chart shows that the stock had a daily "key reversal" at the low of $292.47 set on Dec. 26. The close of $322.50 on Dec. 31 was the input to my proprietary analytics, and this resulted in two of the four horizontal lines on the chart. My semiannual and annual value levels are $323.80 and $302.60, respectively. My quarterly risky level is above the chart at $422.99. The Jan. 31 close at $385.62 resulted in a monthly value level at $359.36. My weekly value level is $370.88.
The weekly chart for Boeing
The weekly chart for Boeing has been positive since the week of Jan. 11, with the stock now above its five-week modified moving average of $364.41. The stock is also well above its 200-week simple moving average, or "reversion to the mean," at $218.32, last tested during the week of Feb. 26, 2016, when the average was $115.75. The 12 x 3 x 3 weekly slow stochastic reading is projected to rise to 77.25 this week, up from 68.81 on Feb. 1.
Trading Strategy: Given these charts and analysis, investors should buy Boeing shares on weakness to my weekly, monthly, semiannual and annual value levels of $370.88, $359.36, $323.80 and $302.60, respectively, and reduce holdings on strength to my quarterly risky level of $422.99.
Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.