Boeing Share Price Soared Over 11% Despite Suspending Operations. Why?

Boeing share price finished yesterday’s trading higher despite the company announcing that it will suspend its operations in the Puget Sound-area for 14 days. The stock of the aerospace company posted an 11.17% profit yesterday as it finished $10.61 higher at $105.62.

The aggressive rise in coronavirus cases in Washington has forced the company to suspend its operations. On Monday, there were 225 new confirmed cases which brought to total number to 2,221. Meanwhile, the death toll has risen to 110 in the state. According to Boeing, it will allow some of its employees to work from home while offering a 10-day paid leave to those who cannot.

Aside from the Federal Reserve’s open-ended Quantitative Easing Program, Boeing share price surged because of an upgrade in its rating. Goldman Sachs has classified the stock as worthy of a buy rating yesterday. This is after Boeing share price has lost more than 33% of its value since the beginning of the year. It is currently at its lowest level since April 2013. According to Goldman, they see air travel to pick up as soon as the coronavirus pandemic dies down and Boeing share price would also rise.

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Boeing Share Price Outlook

On the hourly chart, we can see that there seems to be an upside break on Boeing share price CFDs. It had been trading in a rectangle since March 18 and the rally yesterday was enough to push the stock beyond its recent resistance. If there are enough buyers in the market to sustain the rally on Boeing share price, it could rise to its March 17 highs at $125.60.

Alternatively, a close below yesterday’s low at $93.16, it could drop to last week’s low at $88.67.

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