Anthony Speciale Stock Market Analyst

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Boeing Shows Why You Should Always Trade With the Trend

Between its 737 Max issues, travel restrictions and the plane crash in China, this company has been put through the ringer.

The Boeing Company (BA) has been hit hard over the last few years.

Between its 737 Max issues, the virus-related travel restrictions and the very recent plane crash in China, this company has been put through the ringer.

But let’s take a look at the chart for those trading it, as price always tells the story.

Weekly Chart of The Boeing Company (BA) — Source: TradingView

First, notice that price peaked out in February of 2019 before it started trending south from there.

Then, it ran into the absolute catastrophic drop of the virus-induced selloff in March of 2020.

Much like many other big-name stocks, BA eventually bottomed. It then went on to test several notable Fibonacci retracement levels.

A wide upward channel formation had been structured. However, price never fully tested resistance again.

I bought some $290 strike calls on that press higher, but there was never any follow-through, and my calls ultimately expired worthless.

From that point, that was the beginning of a new downward channel formation indicated by the blue lines.

Price has managed to respect support and resistance for approximately a year now.

When something is trending down, it’s ideal to trade with the trend. Remember the old saying, “The trend is your friend”?

Trying to pick the bottom is ultra-risky.

Typically when something is going up, it’ll continue to go up. And when something is going down, it’ll typically continue to go down.

Once we see a trend reversal, then we can begin to look for buying opportunities.

But until then, shorting resistance remains the game plan for now.

Rules to Live By

First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you.
Nicholas Klein

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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