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BA Breakout

By Johns Wu on Jun 15, 2006

In my opinion, it was BA, Boeing Co., that sparked the rally over the last two days. As you know, since the DJIA is a price-weighted index, high-value stocks like BA make a big impact on the index.

BA_061606.GIF 

I'm embarassed because I've been calling the bear case on BA for the last few weeks. I was wrong. After Airbus's disasterous delay of the A380 line, BA stock is on fire.

It has broken out of a downtrend, and right through the 50 DMA, so this is a bullish signal. 

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This entry was posted on Thursday, June 15th, 2006 at 12:29 pm and is filed under Annotated Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.


5 Responses to “BA Breakout”


By Anonymous on June 15th, 2006 at 12:35 pm

how much further upside do you think ba has?

By JWU on June 15th, 2006 at 12:40 pm

strong resistance at $86 and $88

By sona on June 15th, 2006 at 1:49 pm

Still a very impressive breakout.

By MWU on June 15th, 2006 at 3:50 pm

I recently read a article in businessweek about problems that Boeing has encountered during production of their new 787 dreamliner. I’ll try and pull up select parts of the article from businessweek online when I get home.

By MWU on June 16th, 2006 at 11:18 pm

Basically, Boeing has made a huge bet on their new 787 Dreamliner (much as Airbus has bet on their new Jumbo). However, they are currently having many technical issues that may delay the 2008 launch date. These problems include:

- Failed fuselage section (the part that holds the passangers)
- Problems with the new electronic integration system (the new Dreamliner’s flight systems will rely on electronic power rather than mechanical)
- Problems with incompatable software from competing vendors

Because the major portion of revenue comes when Boeing delivers a finished plane, delays have a siginificant effect. Of course, we really won’t know for sure until 2008 rolls around, so in the mean time BA should be a safe bet.

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