Boeing Rises Higher in Trading

Traders are pricing in Boeing's good news

Boeing Rises Higher in Trading
Photo by Tim Dennert / Unsplash

Boeing (BA) had a great day yesterday! The stock's been rallying from its interim low in October on a lot of good news coming out in its favor. For starters, Lufthansa has decided to buy new planes from Boeing over Airbus. That hasn't happened since 1995! That's nearly 3 decades ago!

Boeing (BA) climbing higher, (c) neuralmarkettrends.com

In fact, it appears that this has been a banner year for airplane orders and both Boeing and Airbus are benefiting! While the recent price action feels good, I do offer a word of caution though, Boeing is NOT trading at an all-time high. It's just climbing out of the local low spot.

Boeing (BA) All Time Prices, (c) neuralmarkettrends.com

Boeing peaked sometime in 2018 in the high $400s and while this leg up looks great, there is a technical resistance line around the $280 mark. We're entering that range now and if that level is taken out, it could go a lot higher.

The problem is, I don't know if it'll go up, down, or sideways; no one ever knows. The only thing you can do is watch your risk and size your position correctly. You make your money when you buy and I've owned BA since December 2020 back when I bought it just off its low.

The one interesting bit of news is that Boeing has a strong seasonality component and tends to do well if you buy it between November and April, as shown below.

Boeing (BA) Seasonality, (c) neuralmarkettrends.com

Of course, you shouldn't rely on this information solely, instead, you should use it as part of your decision support system. Right now traders are pricing in the future even after a not-so-great earnings report in October. Boeing could run out of gas here or it could build enough momentum to ride back up to its previous highs. Who knows, we'll just have to wait and see.