Stock of the day: Boeing

Today’s stock of the day is Boeing Company. We can see a very interesting bullish setup here and it’s still in the early stages, so it may be very interesting for You.

Boeing is still inside a channel down formation (red lines), which means that the long-term sentiment is negative as the price keeps making lower lows and highs. That is negative, but we can see light at the end of the tunnel and this light is not just a random setup but one which very frequently gives a bullish reversal.

The setup that we’re talking about is that the price stopped making lower lows inside of the channel down. Normally, the price should be testing the upper and lower lines of the channel down. Recently, the price stopped the decline on the horizontal support (yellow) at 189. That shows that there isn’t much willingness to continue the drop and investors found a very interesting price, where they think that Boeing is cheap.

Usually, when such a support inside of the channel down formation is formed, it is the start of a bullish reversal. We still have to wait for the buy signal though. It will be created, when the price breaks the upper line of the channel up formation and we’re still pretty far from that. You have been warned though and now you know what would be a good technical option once that breakout happens.