Trade Update: Boeing (BA) Short Signal Hit First Take Profit Target ! Another opportunity to short the stock!
Good morning traders, our SHORT signal trade on Boeing (BA) hit our first Take Profit target quickly following a brutal opening. News regarding the plane crash and the technical issues that cause it continue to be released and the up move in the stock yesterday afternoon is just another opportunity to short the stock. Yesterday, we hit first take profit at $370.0 level as we indicated in our chart yesterday before market open. Currently, the stock is trading at $385.0 level and traders can add or open new short position and profit from the next price decline in Boeing stock.
Good morning, Shares of the Boeing (BA) are down pre market by -9.0%, in premarket trading, after one of the company’s 737 Max 8 planes operated by Ethiopian Airlines crashed shortly after takeoff from the capital of Addis Ababa, Ethiopia on Sunday. There were no survivors among the 157 on board.
This tragic air crash comes few months following a crash of the same plane flown by Indonesia’s Lion Air, which also crashed into the Java Sea, shortly after takeoff, killing 189 persons.
Investigators will be looking at the two separate and similar crashes that took place as the aircraft were taking off. The pilot of the Ethiopian flight was trying to return to the airport after reporting technical problems and with no ability to control the plane, while the weather was clear…
In response, China has grounded all 96 of its 737 Max 8 planes, and Ethiopia Airlines has also reportedly done the same. Considering the above, we believe that more airlines will follow through as the risk is high and cannot be ignored. Also, considering the fact that that is Boeing newest model and thousand of orders are still open, we believe the stock price will come down fast to reflect the high risk in holding this stock.
Currently, the stock closed on Friday at $422 and is trading at pre market at $382.0 level. Traders can take advantage of the situation by shorting the stock at current price and profit from the decline in share price. We have 2 Take Profit targets at $370.0 and $350.0.