Boeing share price action seems to be having no respite at all as all we keep hearing these days about the aviation sector is one bad news after another. A bad situation got worse over the weekend as super-investor Warren Buffett called Berkshire Hathaway’s investment into four American airline companies “an understandable mistake”. He is not waiting around; he has exited the airline business, cut his losses and moved on.
When even the Oracle of Omaha himself admits he never saw this one coming, you know it is a big deal. The four airlines in question have a massive stock of Boeing planes in their fleet. For Boeing, this could not come at a worse time. It had only a few days earlier, announced it would lay off thousands in a massive restructuring exercise.
Boeing is currently trading 2.84% lower at 129.58.
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The daily chart showed that the price drop of Friday had taken the stock below the symmetrical triangle. Today’s candle shows the downside gap on the market open, with price trying to cover the gap in a pullback move.
Rejection of this pullback move may lead to a further decline to 119.13, with the possibility of going below the $100 mark to target the next support at 90.40 if things continue to go south for the airline.
On the flip side, a recovery that takes Boeing share price above the triangle’s apex may allow the stock to claw towards the 149.98 price level (23.6% Fibonacci retracement from the swing high of 11 February to the swing low of 19 March). A break of this price area may allow further recovery to 161.87, with 186.40 (26 March high) hanging around as a potential target if there is a spot of positive news that bulls can hold on to.