Boeing share price only dipped slightly on the day, after news that the company’s aircraft deliveries shrunk to just 4 in May, according to a Reuters update. It had supplied only six aircraft the previous month, and today’s figure represents the lowest monthly aircraft delivery in close to 60 years.
This sharp 87% drop in Boeing aircraft deliveries on a year over year basis did not deter investors too much, as the general sentiment around Boeing share price is that the stock has seen its worst days. Some countries have started to lift domestic flight restrictions, and there is a consensus that international flights may resume in July. This scenario reinforces the positive sentiment that enveloped the stock when the Saudi Sovereign Wealth Fund picked up a stake in the troubled airline nearly a month ago.
Airline stocks have been some of the worst-hit stocks as the coronavirus pandemic shut down 95% of air passenger movement worldwide, causing massive job losses in the aviation sector. Experts have predicted that 2023 may be the earliest date for a full return to the immediate pre-coronavirus travel conditions in the aviation sector. However, Boeing’s shareholders may not be complaining too much as the stock has risen from its 19 March lows of $90.35 to the present price of $223.14.
Despite today’s shedding of 3.22% off the Boeing share price as at the time of writing, Boeing continues to have favourable prospects. Today’s intraday high of 234.20 represents the lows last seen in August 2017, operating in role reversal.
Price needs to break above this level to target the next resistance at 250.00, where the lows of 18/25 September 2017 are located. Further resistance is expected at 275.90 and 299.76, with the move to the latter expected to face contention with the 200-period moving average just above 275.90.
On the flip side, a stall at the current resistance could force a pullback that targets 186.40, with the June 2017 peaks at 204.32 serving as intervening support. Below this area, 161.87 and 151.64 are potential support targets. If the weekly candle ends up as a Doji as is currently displayed, we need to wait for a bearish candle to form after that to complete an evening star pattern, which then has the potential to force the pullback.