Boeing share price is up on the day, following the directive from the US Federal Aviation Administration on four design and operating changes in the embattled Boeing 737 MAX’s design. This move could open the way for the lifting of the grounding order the FAA placed on the aircraft as early as later this year.
However, not all aviation regulators are on the same page as the FAA. Reuters is reporting that the European Union Aviation Safety Agency (EASA) is reserving comments on the FAA directive, and has indicated that it would wait until test flights are conducted in Europe before considering lifting the commercial ban on the aircraft’s flights in Europe.
However, the coronavirus situation which has led to the suspension of nearly all commercial air travel across the globe could present delays.
EASA has reiterated through its spokesperson that EASA has to conduct successful test flights of its own as a prerequisite for approving the return of the 737 MAX to European skies. Meanwhile, Boeing share price is trading at 162.27 or 2.7% higher, enabling the stock to be on a firm footing to break a losing streak that has seen it post six days of losses in seven.
Technical Outlook for Boeing Stocks
Boeing share price is If today’s candle can close above yesterday’s closing price, this would set up a bullish engulfing candlestick pattern on the daily chart. However, the 164.32 price level constitutes an immediate resistance located just above today’s high. Boeing share price action must break this price level via a time filter (double successive candle penetration close above this price level), to be able to target the 186.40 price level, which forms the next upside target. Above this new target, 204.32 and 234.37 constitute relevant resistance levels to any price recovery.
On the flip side, if bullish sentiment remains muted and price action remains capped by the 164.32 price level, then the stage will be set for rejection and possible pullback towards the 151.64 price level, with further support targets at 139.14 and 119.13, in that order.