Will BOEING CO/THE breakout?

A possible breakout setup was detected on BOEING CO/THE (NYSE:BA) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BA.

What is the technical picture of NYSE:BA telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall BA gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BA is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• BA is one of the better performing stocks in the Aerospace & Defense industry, it outperforms 71% of 67 stocks in the same industry.
• BA is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so BA slightly outperforms the market at the moment.
• BA is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that BA is one of the better performing stocks in the market, outperforming 89% of all stocks. However, this overall good ranking is mostly due to the recent strong move.

How does the Setup look for NYSE:BA

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:BA this score is currently 9:

Besides having an excellent technical rating, BA also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 214.14. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 212.41, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BA in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:BA

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.