Mighty Boeing is sputtering and spewing smoke. BA is nosediving into despair after a 737 Max 8 airplane crashes in Ethiopia the second crash of this new aircraft in only a few months time. The tragedy kills nearly 200 people. The first 737 crash was in Indonesia killing nearly 200. The chart shows the collapse in stock price on Monday and Tuesday although generally it is hanging in there. BA drops from 417 to 365 (-13%) on the news and is now at 375 (-10%). A -10% drop places a stock in a correction while a -20% drop is a bear market.
Off the top at 445, price is at 375, -16%, nearing a bear market. The chart indicators are all weak and bleak although the RSI, stochastics and money flow are nearing oversold levels which should set up a dead-cat bounce (anything will bounce, including a dead cat, if you drop it from a high enough level). The 200-day MA at 355 is a logical support level. The 20 and 50-week MA's are at 352-362 so a confluence of support forms in this 352-362 range. It may act as a magnet for price and mighty BA may come down to here and make an important bounce or die decision. Note how price came down to fill the gap from late January.
If Boeing receives a happy ending and resolution from the accident investigation, price will pop higher to fill the purple gap. The selling volume is high. Folks are taking their money off the table and saying see you later. Keystone is not in BA and does not plan to play it. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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