Boeing Has Been Rising but Its Ascent Has Stalled in Advance of Earnings

Boeing (BA) is expected to report fourth-quarter earnings on Wednesday before the market opens. Let’s check the charts and flight plan for this Dow Jones Industrial Average component.

In this daily bar chart of Boeing, below, I can see a strong advance in price from early October. Prices have stalled and corrected in recent days but remain above the rising 50-day moving average line and above the bottoming 200-day line. The On-Balance-Volume (OBV) line has rolled over in January and suggests we are seeing a shift from aggressive buying to aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside in January at a peak slightly lower than the November high in the oscillator. This is a bearish divergence and could foreshadow price weakness in the days ahead.

In this weekly Japanese candlestick chart of BA, below, I see a recent top reversal pattern. Reversal patterns on candles can be from up to down or from up to sideways. BA is trading above the bottoming 40-week moving average line. The weekly OBV line has risen from May but shows a very slight pause now. The MACD oscillator is in a bullish alignment above the zero line.

In this daily Point and Figure chart of BA, below, I can see that prices reached and exceeded a price target in the $173 area.

In this weekly Point and Figure chart of BA, below, a price target of $294 is projected.

Bottom line strategy: Boeing has made a strong rally from early October and now prices are showing weakness ahead of earnings on Wednesday. I have no  knowledge of what BA could tell shareholders but I would reduce any long position ahead of the report.