Boeing
Boeing (BA) shares are once again dropping to a critical price support level as the stock is seeing yet another round of bad news in the headlines.
First, it has been reported that the FAA is investigating another incident with one of the company’s planes in Chicago after an engine cover fell off a plane and struck its wing.
The incident is putting focus back on the company’s manufacturing operations after months of issues.
Additionally, headlines this morning report that the FAA is also investigating a new whistleblower’s claims that Boeing employed shortcuts to reduce bottlenecks in production of 787 and 777 jets.
The bad round of headlines has the stock resting at what is going to be an absolute “must-win” price.
Shares of Boeing found support at $180 in mid-March. The stock bounced, despite continued headline pressure. This is what we refer to as a “dead-cat bounce.”
A break below this same price will increase selling, especially since the stock had time to recover from the initial drop to $180.
Shares of Boeing are likely to target a move to $125 on a break below $180 as the stock is already trading in a long-term bear market trend.
Bitcoin
Bitcoin has been out of the news for the last few weeks as the cryptocurrency has been consolidating in a relatively tight range.
That’s about to change this week.
Two immediate catalysts are kicking in on Bitcoin, and the result is likely to be a 10-30% rally.
First, the upcoming “halving.”
We’re heading towards the anticipated halving that will take place April 19. This is one of those very few fundamental events that has an immediate bullish impact on Bitcoin. It’s hard to determine a price target from the halving, but that’s why we watch the charts.
The chart is the second catalyst.
Bitcoin is charging towards its recent highs just below $75,000. A break above those highs, and the $75,000 mark will cause another fear of missing out (FOMO) rally to kick in.
According to the chart, another 18% rally is likely to take Bitcoin to $85,000, where it will likely take a break before the next advance to $100,000.
Alphabet
Like a horse running in the Derby that makes its move to the outside, shares of Alphabet (GOOGL) are getting ready to make a run.
This is the one AI leader that is making a big technical move as the stock is preparing for a breakout above its recent highs. It’s a classic chart pattern that often leads to 10-15% gains in a short period of time.
I call these “volatility rallies.”
GOOGL shares have been in a tight range (getting tighter) for the last month, which are holding $150 as the bottom of the range. Today, the shares are making a move above $155, which will trigger a FOMO rally as many investors and traders want to be in this stock as earnings approach.
From the look of the chart, a target of $165 is within range over the next two weeks as a “buy the rumor” rally starts to buzz through Wall Street.
Such a run would also set the stock up for a potential “sell the news” pullback, so think nimble on this pre-earnings rally.
I do own shares and call options on GOOGL.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.