Boeing traders are preparing for a tough opening bell in 2 hours time as pre-market trade emphasizes yesterday's bearish bias. Pronounced bearish sentiment in the market pushed the aircraft and rotorcraft manufacturer into a notable 0.71% slide yesterday, falling $1.5 and ultimately closing at $212.
United States Initial Jobless Claims fell short of the 190,000 projections, with new data of 196,000.
Boeing made an initial break below its 21 day Simple Moving Average at $210.48, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $213 currently serving as support. If price action breaks below, the next Fib hurdle is $203.55. Boeing's upper Bollinger Band® is at $216.46 which indicates a further downward move may follow. In contrast, Boeing could begin to recover as it approaches significant support, now $2.43 away from $209.56. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting Boeing to extend its recent losses.
Boeing was not the only decliner in the industrials sector; Union Pacific drops 2.09% yesterday to close at $207.14. Honeywell International closed at $199.22 (down 1.48%). United Parcel Service lost 0.86% yesterday and closed at $184.75.
The stock has been trending positively for about 3 months. The past 3 months have been positive for the aircraft manufacturer as it added 25.4% compared to its 3-month low of $115.86.