Yahoo Finance

Key Takeaways

• Boeing 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.

• The stock has carved out a potential inverse head and shoulders between August and January, a classic chart pattern that signals higher prices.

• A measured move price target, which calculates the distance between the inverse head and shoulders’ head and its neckline, then adds that amount to the top of the pattern, forecasts a bullish target of $223.

• Investors should eye crucial support levels on Boeing's chart around $164 and $146, while monitoring important resistance levels near $180 and $191.

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.