Boeing Stock Running into Bear Signal Amid Poor Results

The 140-day moving average has been a surefire sign of a slump for the past three years

Laura McCandless

Deputy Editor

Oct 26, 2022 at 3:13 PM

Boeing Co (NYSE:BA) is having a rough post-earnings session, down 7.7% to trade at $135.34 at last glance, after the blue-chip airliner's dismal third-quarter results. Though analysts had anticipated profits of 7 cents per share, the company posted losses of $6.18 per share alongside lower-than-expected revenue.

Furthermore, BA is currently within striking distance of a trendline with historically bearish results. According to Schaeffer's Senior Quantitative Analyst Rocky White, the stock's 140-day moving average has seen five similar signals over the past three years, and was lower one month later after every time, averaging a 12.2% loss.

BA Oct26

A shift in analyst sentiment could make things even worse for the shares. Of the 11 firms in coverage, 10 call the stock a "strong buy," while the 12-month consensus target price of $200.28 is a 48.1% premium to current levels. This leaves plenty of room for bear notes moving forward.

Another reason options traders shouldn't bet on a bounce for Boeing stock -- its 14-day relative strength index (RSI) of 85.7 sits firmly in "overbought" territory. This means the stock is overdue for a drop in price.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!