Boeing Suffers on Heels of Fatal 737-800 Crash

BA's 30-day moving average has kept a lid on breakouts lately

by Emma Duncan

Published on Jan 8, 2020 at 11:02 AM

It's another nail in the coffin for Boeing Co (NYSE:BA) this morning -- the equity down 1.3% at $333 -- after reports surfaced that a Boeing 737-800 operated by Ukraine International Airlines crashed in Tehran this morning, leaving no survivors. Downing just minutes after take-off, speculations of engine failure are circling as the potential catalyst. Nine crew members and 167 civilians were on board, including citizens of Canada, Sweden, Iran, and Ukraine. This Boeing model is an older version and not the same as the controversial 737-Max. 

It's no secret that Boeing has struggled for more than a year. Between multiple fatal crashes and the grounding and suspension of its 737 Max jet, the equity has officially breached its year-over-year breaking point and now sits in a nearly 3% deficit. Overhead pressure from the 30-day moving average capped a breakout attempt yesterday.

Lastly, Boeing stock's Schaeffer's Volatility Scorecard (SVS) comes in at 89 out of 100. In other words, the security has consistently made bigger moves on the charts than its options premiums have priced in over the past year.

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