The Boeing share price staged a big recovery on Wednesday, gaining 9.46%. This cemented the previous session’s 5.44% gains as the stock attempted to recover from the three-day slump that it had suffered before then.
The Boeing share price had tumbled more than 10% after regulatory uncertainties regarding the approval of flight resumption of the 737 MAX. Reuters had reported that the company had until December 2022 to secure approval, failing which it would need to conform to new cockpit alert requirements.
However, a Reuters report stating that Boeing would meet with US and European aviation regulators over the pending 777X certification lifted investor sentiment, resulting in the gains seen on Tuesday and Wednesday. The meeting became necessary as the existing 777X and 737 MAX certifications were declared outdated by the US Federal Aviation Administration (FAA) in March 2022. The 777X aircraft is due for its first delivery in 2025, following a delay from earlier delivery date of late 2023. Also lifting sentiment was a report of test flights of the 737 MAX being conducted by China Southern Airlines Co Ltd, pointing to a potential return of the aircraft to China’s skies.
The fundamental triggers for the Boeing share price action will remain the certification situation of both aircraft types. However, there is also an interesting picture on the charts to consider.
Boeing Share Price Forecast
The recovery move of Wednesday has violated the resistance at the 130.01 psychological price mark. This clears the pathway toward the 141.50 price mark (7 June high). A further advance takes the price action toward the 151.64 and 167.21 resistance barriers. Above these levels, only a monumental recovery will make the 175.92 (25 April high) available as a new northbound target.
Conversely, a retreat below the 130.01 price mark sends the price activity toward 119.13, where the lows of 20 May and 26 May 2022 are found. An additional downside target is found at the 90.40 price mark (19 March 2020 low), but there is a potential for a pitstop at 114.47 (15 May 2020 and 13 June 2022 lows).