Boeing Co. is another wonder-stock of the post-crisis years. It climbed up from $29 in 2009 to above $158 in February 2015. If you were to invest in Boeing 6 years ago, you would have been very happy today. However, no trend lasts forever. In our opinion, the stock is likely to be a disappointment during the next couple of years. The reason we believe that is the wave structure of the post-2009 bull market. As the chart below shows, it is a five-wave impulse.
According to the Elliott Wave Principle, every five-wave sequence, such as this one, is followed by a three-wave retracement in the opposite direction. So, after (1)-(2)-(3)-(4)-(5) to the upside, there should an A-B-C to the downside. It is interesting to point out, that there is a textbook Fibonacci relation between waves (1) and (3). Wave (5) does not seem complete yet. It still has the potential to lead Boeing to e new high, probably around $165. Unfortunately, this is the region, where the plane is expected to hit turbulence. If this is the correct count, Boeing could be poised for a significant decline. Levels around $120 are highly probable.
