Boeing Co.’s stock declined from 144.50 to 118.76 and has been moving sideways ever since. If we examine the fall we will see that it has an impulsive structure with wave 5 being an ending diagonal. According to the Elliott Wave Principle, after every impulse a correction should follow. In this case, that correction seems to be a triangle in wave B position. If this is the correct count, we have to expect more weakness in wave C, which could take prices to 115.00 or lower.
However, triangles are tricky patterns. If wave “e” goes above the top of wave “c”, the triangle would be invalidated, but we will still be in some kind of a corrective pattern. This means that we will remain short-term bearish on Boeing as long as 144.50 stays untouched.
Chart by www.trader.bg
