BA Boeing Monthly Chart; Diamond Pattern; H&S; Tight Bands Forecast Big Move Coming

Boeing soars across the clear blue skies. Psszt. Sputter. Pffsszzt. Sputter. Mayday! Mayday! Two of the new BA planes killed nearly 400 people with their faulty landing software and hardware and inadequate pilot training. Boeing has been in a tailspin ever since. A once iconic company lessened itself to cheaper production costs to squeeze that bottom line, and now there are human graves to show for it. This behavior is commonplace in the engineering industry ever since globalization took hold from the 1980's to present. The companies of all those employees that perished have already moved on. To this day, folks will opine about the tragedy, and pledge to never forget ole what's-his-name?

Adding more headaches, Boeing's Starliner's mission is aborted after it may have been traveling in the wrong direction as it broke into space. It was supposed to deliver supplies to the space station. Humans are supposed to go up in that bucket-o-bolts this year. Good luck to them.

Thus, Boeing has hit a soft patch and is sliding off the runway as Keystone continues the campy metaphors. The chart looks like a bunch of spaghetti up there in the right corner, but, you have to go where the action is at if you want to have fun. A diamond pattern is shown in blue where price is chopping sideways and now resolving to the downside out of the diamond. That's not good.

The purple lines show a head and shoulders (H&S) pattern. Pulling the numbers from the weekly chart, the head is at 440 and neckline at 330, which is a difference of 110, so the downside target is 220 if the 330 neckline fails, and it did. The bulls better do something fast or they are about to go down in a ball of flames. Boeing needs some good news to stabilize prices and adjust the chart, otherwise, BA is in trouble.

The red lines show the neggie d spankdown on the monthly basis indicating that this is a very long term top that has occurred. The money flow is feeling love as all those BA dip-buyers, worried that they are missing out on a buying opportunity, jump back into the stock. They will likely have their heads handed to them on a platter. The red lines show the indicators remaining weak and bleak wanting more lower lows in price even if BA bounces a little bit during the month. The RSI has just dipped into bear territory at 49%.

The pink arrows show the tight bands that squeeze inwards and squirt price wildly in one direction or the other. Think of a tube of toothpaste with the cap on. You squeeze it with all your might and whammo, the cap flies open and toothpaste flies out but you don't know if it will hit the sink mirror, or the toilet, or your honey between the eyes. The bands tell you a big move is coming but do not predict direction. The move in 2013 was straight higher. The move in 2016 was straight higher, through 2017 and into 2018. Will it be three times for the bulls? Or is the end game now? You will not have to wait too long. A couple candlesticks will tell you the answer which is a couple months, a few weeks.

Keystone does not own any position in BA long or short. BA appears to be chopping sideways but it is not a tradeable chop it is instead a sloppy erratic chop. You can clearly see price bouncing on the daily chart due to the possie d. That would have been the trade a few days ago going long for a quickie pop. Price does not seem to have much juice and appears very weak. A failure at 309-310 will lead to 295 which likely opens the door to 283 in quick order then 270-275. Boeing bulls had better push price above 330 pronto, otherwise, they may be smart to strap on a parachute, grab their money, and jump out of this airplane. 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.

Note Added 9:51 AM EST: BA is dead flat sitting at 322 wondering what to do; soar to the heavens or spiral into H*ll.