Pre-open trade suggests a higher market open today with yesterday's bullish sentiment adding to the risk-on mood. After ending Tuesday at $202.19, Boeing went up to $211.7 only to drop back, yet still traded well overall and closed at $203.03 yesterday.
United States GDP data will be released today at 12:30 UTC, with an expected decline to two.
Boeing's uptick comes amid good United States macroeconomic data released during the day — data for United States Core Durable Goods Orders published yesterday at 12:30 UTC came out at 0.3%, beating projections of -0.2% and showing improvement over the preceding figure of -0.3%.
On the flip side, United States Crude Oil Inventories published yesterday at 14:30 UTC came out at -5 million, falling short of the -1.49 million projections and continuing its decline from the previous -4.58 million figure.
Meanwhile, United States 5-Year Note Auction released yesterday at 17:00 UTC with a figure of 3.5, while the previous figure was 3.665.
Support/Resistance levels obtained from chart analysis indicate that although Boeing is appreciating today after rising as high as $211.7, price action is now slowing and consolidating around $11.79 below the $214.82 resistance level. Trend-following investors would be interested to note that despite posting gains on yesterday, Boeing slid below its 50 day Simple Moving Average at $207.02 during the last session — an early indicator that a negative trend could be emerging. Asset volatility analysis shows that Boeing's lower Bollinger Band® is at $200.34, indicating that the market is oversold and fertile for new buyers.
Overall, the technical outlook suggests Boeing is likely to remain muted for the immediate future, with no clear-cut direction.
While Boeing was bullish yesterday, the following industrials stocks underperformed: Raytheon Technologies dips 3.37% yesterday to close at $101.09. Lockheed Martin closed at $461.62 (down 2.94%). United Parcel Service drops 2.11% yesterday to close at $176.29.
Furthermore, the market is looking at United States Pending Home Sales projected to come out at 0.5% — worse than previous data of 0.8%; data will be released today at 14:00 UTC. United States GDP projected to decline to two while previous data was 2.6; data will be released today at 12:30 UTC. Today at 12:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 248,000 from the preceding figure of 245,000.
Trading mostly sideways for a month. The past 6 months have been positive for the aircraft and rotorcraft manufacturer as it appreciated 52.08%, having traded as low as $115.86.
