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

Deputy Editor
Oct 26, 2022 at 3:13 PM
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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. 


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