Boeing: towards a new landing of the action at $120

Boeing stock could return to near-term lows of the year

The US aerospace giant’s stock is on course for another landing to its year lows at around $115. The title Boeing (BA) begins a new decline since last week against a backdrop of renewed investor risk aversion.

Boeing stock tumbled more than 7% last week and is likely to continue to lose altitude given the deepening global economic slowdown. JP Morgan’s Global Manufacturing PMI fell to 50.3 in August from 51.1 the previous month, continuing its decline for more than a year.

In this context, the most cyclical sectors are the most threatened. The industrial sector is holding up relatively well despite its “cyclical” nature, but monetary tightening by central banks around the world should increasingly impact household consumption and business investment and therefore penalize the industrial sector.

On a micro level, the stock is also under pressure due to revenues and profits falling short of expectations for four consecutive quarters.

Boeing (BA) stock price daily chart – key levels


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