Boeing Shares Moving Sideways After London Aircraft Fire

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Boeing Shares Moving Sideways After London Aircraft Fire

Boeing Shares Moving Sideways After London Aircraft Fire

Boeing shares are moving sideways inside a range as traders try to pick a direction after the London fire that involved a 787 aircraft. Price found support at the $140/share level and resistance at $148/share. RSI is on middle ground, confirming that the consolidation could carry on.

Stochastic is on its way down though, which suggests that a selloff might take place. At the moment, the stock is at the middle of its range and might be headed for the bottom. The 100 SMA is below the longer-term 200 SMA, confirming that the path of least resistance is to the downside.

Increased selling pressure could mean a break below the support at the $140/share mark and further losses, possibly until $100-120/share. Investigations on the London aircraft fire revealed that it was caused by a short circuit, putting the safety of Boeing planes in question.

Boeing Shares Outlook

On Wednesday, Britain’s Air Accidents Investigation Branch said the fire on an Ethiopian Airlines plane at London’s Heathrow Airport was caused by a short-circuit in the emergency locator transmitter and damaged the rear fuselage. No was was injured in the fire since the airplane was empty and parked on a runway in a remote area of the airport.

In 2014 the Federal Aviation Administration and Boeing said the plane meets the “intended high level of safety,” following a joint review that was initiated in January 2013. In September last year, Norwegian Air had to ground its 787s several times due to issues with the oxygen supply to the cockpit and problems with the brakes, hydraulic pumps and power. Also, a 787 operated by Polish carrier LOT was grounded after a system that identifies planes to air-traffic controllers failed.

New aircraft plans could continue to lift Boeing shares, although the company is facing stiff competition from Airbus when it comes to revolutionary wing designs. Airbus building the first wings for its new A350-1000, the largest of the new line and the jet that will most directly compete with Boeing’s 777-9X.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.