New Signal: Boeing Stock a Buy Opportunity before Aviation Market Back in Business
This week we took close look at Boeing stock, as sentiment become very negative on the stock due to the ongoing aviation market shutdown and the 737 Max jet that has been grounded for over a year following two deadly crashes. While the stock price has been under pressure, trading at 2016-17 price level, big fund managers and investment banks have been grabbing shares in believe that it is time to buy before the whole world aviation market return to activity. As part of that buying spree, the Saudi sovereign-wealth fund bought a very large position in Boeing (BA).re
The Public Saudi Investment Fund disclosed a $714 million stake in Boeing in their official fund filing last Friday. In addition, Last week Boeing received a $2.6 billion dollar order from the U.S. Navy to build Harpoon and Standoff Land Attack Missile for the Saudi Government.
Looking at the chart we see price in a recovery mode, moving out of a triangle pattern that might provide the stock price further momentum on the upside to two price levels we identified as targets using Fibonacci retracment levels (see on chart) first at $150 (23% retrace level) and $188 level (38.2% retrace level). Traders have a good opportunity here to buy one of Dow 30 respected companies at a discount price.