With the recent World Trade Organization (WTO) findings saying both the global giant plane makers, Airbus (PA:AIR) and Boeing (NYSE:BA) received an unfair and illegal subsidies from their respective governments, this could spell trouble on both transatlantic continents.
The United States reportedly step-in and moving on the fast-track to tackle the problems as it has target to implement tariffs on aircraft and aerospace parts, whereby the European Union (EU) may have to wait until 2020 to set the retaliation against their US counterparts.
With all the fundamentals, sentiment and catalyst above that has just been surfacing, technical analysis (TA) shows a first hand glance on what about to happen. Looking at the Boeing (NYSE:BA) chart above, the first signal comes from MACD indicator about a month ago depicted by histogram and followed by MA cross-over. Second signal is depicted by the Fan trendlines, as the 3rd trendline was being breach sometime in early September 2019. Finally, a bullish candle crossed the long-term trendline (MA200) with a closed above it.
Price has just crossed the 380 resistance level and a pushed towards the 400 level may well established the bullish bias of BA. And this could be a new shift of BA to trend north this coming winter season, despite the Boeing (NYSE:BA) 737 Max still grounded due to safety issues with backlash from its long-term customers Southwest (NYSE:LUV) and Ryanair (LON:RYA) in the UK.
Suggest to consider for a long position if breaks above 20-days high of 391 and placing stop at the recent low on Sep 23.
Sample Trading Strategy:
Buy above 391.00
Stop below 374.00
Profit Target at 416/420/440