Boeing (BA) shares will probably stay on buyers’ radar screens after slipping greater than 2% Monday following information that South Korea ordered an inspection of all 737-800 planes within the aftermath of a Jeju Air crash over the weekend that killed 179 folks.

Boeing shares have had a turbulent 2024, weighed down by a sequence of plane high quality points and a protracted strike by its union machinists that prompted the corporate to raise additional capital in a bid to protect its investment-grade credit standing and stem its money drain. 

Though the inventory has misplaced one-third of its worth this yr, it has recovered round 14% over the previous month as of Monday’s shut, after the corporate reported earlier in December that it had restarted manufacturing of its troubled 737 MAX jets.

Beneath, we take a better take a look at Boeing’s weekly chart and use technical analysis to level out essential value ranges price watching out for.

Falling Wedge Breakout

Boeing shares have trended larger after breaking out from a falling wedge on above-average volume earlier this month, signaling a possible bullish reversal.

Regardless of at this time’s news-driven decline, the inventory stays above the intently watched 50-week shifting common (MA), indicating underlying shopping for stress. Furthermore, the relative strength index (RSI) confirms enhancing value momentum, with the indicator flashing its highest readings since January.

Let’s establish three essential overhead areas on the Boeing chart to look at, in addition to an important support level to watch if the shares bear a retracement.

Necessary Overhead Areas to Watch

Additional upside might see the shares climb to round $192. This space might present resistance close to the downward sloping 200-week MA and a trendline that connects a variety of comparable price action on the chart from June 2020 to July this yr.

A detailed above this location might propel a transfer to the $243 space, a area on the chart the place buyers might determine to take profits close to distinguished swing highs that shaped in December 2020 and July 2023.

Shopping for above this degree opens the door for a retest of upper overhead resistance round $270, an space the place the shares might encounter promoting stress close to distinguished peaks in March 2021 and December final yr. Curiously, this area additionally roughly aligns with a bars sample projected goal that extracts the inventory’s uptrend from October 2022 to July final yr and repositions it from this yr’s November low.

Essential Help Degree to Monitor

Upon a retracement, buyers ought to maintain a detailed eye on the $140 degree. Purchase-and-hold buyers might search for entry points round this space close to the falling wedge sample’s decrease trendline, which additionally intently aligns with vary of comparable value factors extending again to October 2020.

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As of the date this text was written, the writer doesn’t personal any of the above securities.