Boeing share price is up for the 2nd day in a row but continues to face headwinds as the Federal Aviation Administration (FAA) issued a notice to international aviation regulators concerning an electrical grounding issue in 100 Boeing 737 MAX planes. The FAA says Boeing is working on a fix after the plane manufacturer notified the US regulator of the electrical system issue on April 7. All planes identified with the problem remain grounded.
Several airlines had started to take delivery of the Boeing 737 MAX aircraft after the plane received clearance to fly from the FAA in November 2020. Flights had been cleared for resumption in North America, Europe and Brazil, but a former senior manager raised alarms in a report that faulted production quality and electrical issues. This report has prompted concerns about the aircraft being cleared to fly prematurely in several quarters, and the latest fixes do not help in allaying these fears.
Boeing is up 0.53% on the day but has shed off half of its intraday gains.
Technical Levels to Watch
Boeing share price is presently trying to get some upside momentum from a bounce on the 229.50 support (25 February and 5 March highs). The advance is expected to meet resistance at 247.02 (10 March high). Above this level, further resistance barriers are found at 259.44 and 267.40 (18 March high), before the 2021 high at 278.23 is approached.
On the flip side, the progressively lower lows (identified in red circles) could be indicative of dwindling buying momentum. This scenario could put the 229.50 support at risk, with a breakdown leading to a decline that targets 222.18. Below this level, 207.84 and the 200.00 psychological support (8 February and 18 February lows) serve as additional targets to the south.