Boeing Shares Up On New Plane Deals; Still Facing Headwinds Above 250.00

Boeing shares are marginally higher on the day after the company secured an order from Southwest Airlines for 100 737 MAX planes. Company executives are hailing the deal as a landmark vote of confidence on the industry in general and the plane in particular, following one of roughest patches in the company’s history. 

Additionally, Reuters is reporting that AerCap Holdings has signed an agreement to lease 6 Boeing 787-9s and 3 Boeing 787-8 aircraft from Norse Atlantic Airways. Delivery of the aircraft is expected to commence later in the year. 

Boeing stocks are still facing significant headwinds, as the aviation industry is yet to pick up from the impact of the coronavirus on travel. The company is also facing multiple lawsuits, including a shareholders’ lawsuit in a Delaware court over the safety of the 737 MAX. The lawsuit alleges that the board of the company acted negligently in not conducting proper oversight of the safety profile of the aircraft. Boeing is seeking a dismissal of this case.

Boeing shares are up 2.38% as of the time of writing.

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Technical Outlook for Boeing

Boeing’s active daily candle is sitting on top of the 250.00 psychological support. A bounce that ends in a 3% closing penetration above this level confirms the breakout and opens the door towards the 264.00 price mark (6 March 2020 and 12 March 2021 highs). Bulls need to uncap this level and the 2021 high at 278.57 to push to the immediate pre-pandemic highs. 

On the other hand, a breakdown of the support at 250.00 opens the door towards 234.37, with 224.13 and 215.73 lining up as additional downside targets. 

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Boeing; Daily Chart

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