After nearly a year of waiting for $BA to crack under $300 following the 737-MAX disaster and grounding of all those planes, it finally did it with this move down into the $26x’s, but now it’s here the situation is more complex than the issue of the MAX and I not prepared to buy right now.
With the amount of travel disruption building around the world, and having already seen small UK airline, Flybe, go into administration yesterday, questions might need asking about aircraft order books over the next couple of years with so much revenue likely to be lost this year.
It’s a massacre out there for airlines right now, $AAL is down 45% since it’s February high and down over 55% from it 52-week. Other big US carrier like $DAL and $LUV are down 25-30%. I’ve not looked to see if they have issued revised guidance as of today but the mothballing of planes, cancelled routes and planes flying well below capacity is going to cause some major problems for them.
With respect to Boeing, I’m thinking that setting a price alert at $245 and revisiting to reassess the state of things is the way I want to play it, there is a token support level in that area down to the 61.8 fib retracement at $233 related to this massive rally it’s had since 2016 which started when price broke our of a long consolidation following the presidential election.
Do you have a view on Boeing?
Thanks for your time.
$BA $SPX500 $DJ30
