Summary:
• Boeing Co (NYSE:BA) sank by over 2% on Tuesday, after a report that the 737 Max may be sidelined through the holidays.
• Based on its market cycles, we believe the stock has further downside risk in the coming weeks.
Boeing (BA) Stock Weekly Chart
The Wall Street Journal reported on Tuesday that officials from the Federal Aviation Administration are not satisfied with Boeing’s progress in meeting requirements to bring the 737 Max into compliance.
The plane has been out of commission since March of this year, after two fatal crashes related to its design. Commercial airlines have recently delayed the inclusion of the plane into their flight schedules, with the current estimates for early to mid December.
Our approach to stock analysis uses market cycles to project price action. Our analysis of BA shows the stock in a declining phase for its larger cycle. Our target is $320 in the coming weeks.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.