Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Boeing Crisis Set to Aggravate as FBI Joins Investigations, But Stock Remains Resilient

Companies / Company Chart Analysis Apr 05, 2019 - 12:27 PM GMT

By: ElliottWaveForecast

Companies

Summary

  • The two Boeing crashes in late 2018 and March 2019 killed more than 300 people.
  • FBI assisting Federal transportation authorities in investigations leading to the aircraft’s certification.
  • Possible conflict of interest between FAA and Boeing management suspected.
  • Europe and Canada say they are conducting their own reviews into Boeing’s changes to the inflight control systems.
  • Boeing’s woes would be compounded and put pressure on the stock if airlines start cancelling pre-booked orders.
  • Boeing stock resilient until now but could slump if prices break the recent lows of $363.

The recent Boeing 737 Max 8 crash in Ethiopia has led to an unprecedented crisis for the world’s largest manufacturer of passenger jets. Only a few months back, Max 8 was the most sought after passenger transport with about 371 jets flying to various destinations and about 5000 firm bookings, the kind of success aircraft manufacturers aim to accomplish.

But the fatal crash by Ethiopian Airlines on March 10th has changed all that. Not only has it led to a massive worldwide stir with aviation authorities across continents grounding the jets, even passengers and crew were nervous to fly on them before the ban, and unless Boeing comes up with a solution quickly, the future of the US aircraft manufacturer’s large order book looks to be in jeopardy.

Boeing is not new to this kind of crisis. In the late 1965 and early 1966, four new 727 passenger jets crashed while attempting to land at US airports with two crashes occurring within a few days of each other. Although, concerns about the jet quickly faded after Boeing ascertained that the aircrafts are safe, the planes were a major success and Boeing sold more than 1,800 jets before retiring them in January this year. This time around too, the company is hoping passengers will get over the fear of flying the 737 Max planes even as the company’s engineers scramble to fix the flight’s automated control systems, the key issue which is likely to have caused the fatal crashes.

With new shocking facts being revealed every day, the Federal Bureau of Investigation (FBI) has joined the widening probe to determine how the aircrafts were deemed safe and certified even as reports emerge that pilots flying the Max 8 were trained on the operational aspects of the flight on IPads with no information provided on the MCAS.

While Boeing was able to quickly recover from the 1965-66 crash, this one could lead to an unusual prosecution, the first for the aircraft manufacturer as critics question the FAA’s urgency in certifying the aircraft without thoroughly reviewing the jet’s technical documents.

Coming to the performance of Boeing’s (BA) stock, the fundamentals are robust with the company’s revenue jumping more than 8-percent to $101.12 billion in the 12-months to December 2018 from $93.39 billion the previous year. Likewise, the diluted EPS spiked to $17.85, a solid growth of about 33- percent in FY 2018 from a year earlier, boosting the company to raise the dividend paid to shareholders from $5.97 in 2017 to $7.19 per share last year.

On charts, the company’s shares have shown resilience up until now in the face of the current crisis with prices rebounding from key chart supports at $367.00 (the gap between January 29th – 30th 2019) after sliding more than 10 percent from the March 8th close. The stock is forming a pennant on the daily chart and in the next few sessions, prices are expected to narrow to $370-380. If prices break below the recent lows of $363.00, the stock could plunge by $55-60.

Boeing (BA) 4 Hour Elliott Wave Chart

According to Elliott Wave Analysis, Boeing is due for a sharp pullback from the March 1st highs of $446.01. The first leg of this correction ended at $361.53, and prices are due for a rebound before the next nosedive.

Conclusion-

The fatal crash involving Boeing’s new 737 Max 8 presents a major dilemma to the world’s largest airplane manufacturer. In addition to the waning confidence of flyers, the ongoing investigation by the FBI is likely to add to the vulnerability of the company’s shares. The long term fundamentals of the company remain robust, but in the short term, shares of Boeing Inc. could witness the biggest correction since 2003.

By EWFHendra

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2019 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in