Boeing has reported that it delivered only 239 planes so far this year, which is a 37% drop compared the same period in 2018. Deliveries of its controversial Boeing 737 MAX fell by more than half. The news is coming days after Saudi Arabian airline Flyadeal walked away from a deal which would have seen Boeing supply thirty 737 Max jets to the Saudi budget airline operator. Boeing’s loss, in this case, counted as a gain for Airbus, as Flyadeal chose to replace the Boeing order with an order for thirty A320 Neo jets, with an option to purchase an additional twenty aircrafts. Airbus reported a 28% rise in its deliveries for Q2, capitalizing on the 737 MAX’s troubles.
This is the 1st time in eight years that delivery orders for Airbus have surpassed those of Boeing. The stock price of Boeing took a hit after the 2nd of two crashes involving the 737 Max that collectively killed 346 people.
The US stock markets open in less than 3 hours from now. Boeing is trading at the top end of a downward channel and also at the site of a key level of resistance at $353.22. The stock has lost 91 cents in pre-market trading and looks set for a lower open.
Given the downward trending channel, I suspect that prices can turn lower from current levels and reach $348.02 price as long as the price does not trade above $355.02. If price indeed trades above $356.50, then this would invalidate the bearish view, and I suspect BA’s share price could reach the $357 intraday resistance level.Don’t miss a beat! Follow us on Twitter.
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