Stock of the day: Boeing

Stocks are staying strong and are not much affected by the recent reversal on the USD or drop on Oil. In this environment, it is natural that we are going to have more bullish occasions and one of them is a very promising setup on the Boeing Company.

Until the last week, Boeing had been on the rise for six consecutive weeks. This upswing allowed to finish a very handsome double bottom formation (yellow), which is very often considered a call sign for a bullish reversal. Last week was bearish but very easy and rather flat, which did not change the overall positive sentiment. The crucial point here was the beginning of November, when the price managed to break three key resistances – two down trendlines (upper red and blue) and the horizontal resistance on the 170 USD (orange).

As long as Boeing stays above those three areas, inclinations remain positive and we have a full buy signal. Price dropping below could be definitely negative but chances of that happening are currently very low.