Aside from risk appetite sparked by optimism on the coronavirus pandemic, Boeing share price surged as the company showed signs of progress towards normalcy. The stock is up by over $15 or more than 11.50% as it trades around 149.72.
Earlier today, Boeing announced that it will soon restart operations in its operations in its Seattle factory as early as April 20. This means that around 27,000 people could get back to work. To mitigate the risk of infection, the company will impose physical distancing measures. Employees will also have wellness checks and contact tracing will be implemented.
The surge in the Boeing share price was also fueled by news that Gilead’s Remdisivir could be a viable potential cure for the coronavirus.
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On the 4-hour time frame, it can be seen that Boeing share price seems to have broken to the upside of its recent consolidation. By connecting the highs and lows from March 18, it can be seen that the stock had formed a symmetrical triangle. Zooming out, a bearish pennant also becomes apparent. This is a chart pattern characterized by a sharp drop and followed by a consolidation. If there are enough buyers to sustain the rally on Boeing share price, this bearish indicator could be invalidated. A close above its current levels around 149.50 could be enough to signal a potential bullish run. Near-term resistance would be at 164.46 where the stock peaked on April 7.
On the other hand, if Boeing share price falls to yesterday’s lows at 132.86, it could mean that today’s price action is nothing more than just a fakeout. Should this happen, we could expect the stock to fall to the low of April 2 at 119.68.