Watch These Boeing Price Levels as Stock Hits Turbulence After Lower Plane Deliveries

Boeing (BA) shares were among the few decliners in the Dow Jones Industrial Average Wednesday, one day after the aircraft maker reported a decline in 2024 plane deliveries.

While the company’s December deliveries increased from November, they fell to 348 last year from 528 in the prior year, marking Boeing’s lowest number of jet handovers since the Covid-19 pandemic.

The plane make has faced significant headwinds over the past 12 months stemming from quality issues, heightened regulatory scrutiny, and a seven-week strike by machinists that slowed the company’s assembly line.

On Wednesday, Boeing stock fell 0.5% to $166.20 and was one of just seven Dow components to lose ground. Boeing shares lost about a third of their value last year but have gained 21% since hitting their mid-November 52-week low. So far this year, the stock is down 6%.

Below, we break down the technicals on Boeing’s chart and point out crucial price levels that investors may be watching out for.

Inverse Head and Shoulders Emerges

Boeing shares have carved out a potential inverse head and shoulders between August and January, a classic chart pattern that signals higher prices.

While the stock has retraced back below the closely watched 200-day moving average in recent weeks, the dip has occurred on lower-than-average volume, pointing to a healthy pullback rather than investors opening new short positions.

Let’s apply technical analysis to project a measured move bullish price target and also point out key nearby support and resistance levels.

Measured Move Price Target to Watch

Investors can project a potential bullish price target by using the measured move technique, also known by chart watchers as the measuring principle. 

To apply the analysis, we measure the distance between the inverse head and shoulders’ head and its neckline, then add that amount to the top of the pattern. For example, we add $43 to $180, which forecasts a target of $223.

 Crucial Support Levels to Eye

Further profit-taking could see the shares descend to around $164. This region may provide support near the January low, an area that also closely corresponds with troughs that formed on the chart in April and August last year.

A deeper correction in Boeing shares brings lower support at the $146 level into play, a location on the chart just above the stock’s 2024 low that may attract buying interest near the early-October trough.

Important Resistance Levels to Monitor

A resumption of the stock’s post-election rally could initially propel a move up to around $180. The shares may run into selling pressure in this region near a trendline that links multiple peaks and troughs on the chart stretching back to the October 2023 swing low.

Finally, buying above this level would could see the shares climb to $191. Investors who bought shares at lower prices may look to lock in profits in this area near a horizontal line that joins a series of similar price points on the chart from November 2023 to August last year.

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As of the date this article was written, the author does not own any of the above securities.