BA (NYSE) The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services. The stock price has been very volatile over recent weeks, having a rally earlier this month before dropping sharply again. Investors and analysts alike are concerned with the demand for some of Boeing products in the market particularly within the aviation industry. We’ll be spending some time looking at the technical indicators to help us understand where Boeing might be heading, and provide an Boeing stock price analysis.
The Moving Average Convergence (MACD) is a trend momentum indicator that shows the relationship in this case between the 12 day and 26-day moving averages. It is commonly used as a buy or sell signal if the MACD 12 day line (blue) crosses the 26-day signal line (orange), It indicates a bullish buying signal. This is because the shorter 12 day moving average has diverged from the long term moving average and upside momentum is occurring. The opposite has occurred in the above graph with Boeing pointing towards a possible increase in decrease. However before you can use market insights to better your decision making it’s important first to learn how to trade. Previously we did similar analysis with Beyond Meat in order to best understand where the price might head before the stock skyrocketed to where it is now. Likewise our Boeing stock price analysis yields similar details.
The Arnaud Legoux moving average in my opinion is the king of all the moving averages for two primary reasons it is highly responsive to movements in the tread and it is also a-lot does a better job at smoothing out a tread. This was a common drawback for investors using traditional moving averages. Only made in 2009 the Arnaud Legoux moving average is new to the moving average family but insanely effective, as it is swifter eliminating the price lag that is often associated with moving averages. The fundamentals of the moving average remain the same however if the stock price in blue line moves below the Arnaud Legoux moving average in the red line it highlights a bearish trend is occurring indicating prices may fall. This is the case with Boeing as we can see the stock price has started to cross the Arnaud Legoux moving average. Many stocks are currently being shorted on the market and as a result, we’ve compiled a list of some of the most interesting here.
With all this said it is always important to remember to diversify your investments to ensure that you are less sustainable to market volatility and rapid market movements. Also if you are new to investing make sure you look into trading with a demo account to practice, more information on that can be found here.