- Summary:
- FAA writes US Congress on intentions to start the recertification of the 737 Max's autopiloting systems, causing a jump in Boeing share price.
Boeing share price is receiving a boost this Monday after the Federal Aviation Administration (FAA) confirmed that it would start conducting certification test flights on the grounded 737 MAX aircraft. These certification test flights could resume as soon as today after the Type Inspection Board of the FAA said in a letter to the US Congress that it had completed its review of proposed changes made by Boeing to the automated flight control system of the aircraft.
A decision to return the aircraft to service is still some time away, but the news that the plane may soon be flying once more is being received well by investors. This adds yet another fillip to the Boeing share price, following the investment by the Saudi Sovereign Wealth Fund into the company.
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Outlook for Boeing Share Price
Boeing share price jumped 7.3% on the news and is now challenging the resistance at 186.40. A break above this level opens the way towards 204.32, with the recovery highs at 234.37 remaining the near-term target to beat for buyers.
A break of that area continues the recovery phase for Boeing share price, which had been as highs as $350 in February 2020 before the coronavirus pandemic shut down the global aviation industry. The 200-SMA dynamic resistance could become relevant to an advance of price towards 250.00 or 275.90.
On the flip side, failure to break the current resistance could send prices lower, with 183.01 and 151.64 being the immediate targets to the downside. Supporting this decline is the descending triangle pattern on the daily chart. A break below 161.87 breaks down the triangle, which could have a price projection move that may extend to 139.14 if the technical expectations are met.