Thursday, 17 March 2016

BA - continuing to climb with the main market

Whilst the broader market broke a new cycle high of sp'2046, there was more notable strength in Boeing (BA), which settled higher by a rather significant 2.4% @ $130.69. Next resistance is the 200dma, currently in the $134s.

BA, daily

BA, monthly


Boeing has effectively ramped around 30% since the low of $102 in February.

On any basis, this is one crazy ramp, and it is notable that during this time Oil has climbed from $26 to the $40 threshold. Unquestionably, higher aviation fuel prices are NOT bullish for the airlines, although I recognise most will have contracts that protect against such price volatility in the short/mid term.

If the broader market rolls over into the spring, Boeing looks highly vulnerable to breaking below the Feb' low. Any price action <$100, would be suggestive of $75/74, but with the ongoing rally, that is almost 50% lower!