close icon

Boeing Stock Ready for a Final Ascent

The last time we wrote about Boeing stock was in early October 2018. In that article we shared our view that while BA was approaching the $400 a share mark, it was time for the bulls to play it safe. The Elliott Wave principle suggested that a bearish reversal can soon be expected, even if Boeing stock exceeds $400 first.

It did not. $394 turned out to be the best the bulls were capable of. By December 26th 2018, Boeing was down to $292.50 a share, losing almost 26% in less than three months.

2019 looks much better so far. Boeing stock is once again above $350 and it seems that long-term investors have taken advantage and bought the recent dip. But was that a wise decision? Let’s take a look the updated 2-hour chart of Boeing stock.

Elliott Wave forecast Boeing stock

It turns out that Boeing has been locked in an expanding triangle correction during most of 2018. Labeled A-B-C-D-E, this pattern has five waves moving sideways, each bigger than the previous one.

A Pattern to Worry About

Triangles are continuation patterns, meaning that once a triangle is over, the larger trend resumes. Since Boeing was undoubtedly in an uptrend before the triangle began in February 2018, it makes sense to expect more strength towards a new all-time high now.

On the other hand, triangles precede the last wave of the larger sequence. Here, this triangle fits into the position of wave (4) on the weekly chart below.

Boeing stock's weekly chart spells trouble

The weekly chart reveals Boeing’s entire uptrend since March 2009. Unfortunately for the bulls, it looks like a five-wave impulse, labeled (1)-(2)-(3)-(4)-(5), whose fifth wave is currently under construction.

The market has obeyed the guideline of alternation since wave (2) is a sharp A-B-C zigzag, while wave (4) is a sideways triangle correction. Wave (4) seems to have terminated slightly above the 38.2% Fibonacci level. In addition, a trend channel can be drawn through the highs of waves (1) and (3) and the lows of (2) and (4) to further validate this count.

Boeing Stock Long-Term Vulnerable

If the analysis so far is correct, we can expect more upside in Boeing stock in the next few months. The exact length of wave (5) is hard to measure in advance, but the bulls should be able to conquer $400 and maybe even $450.

Unfortunately, investors, whose hopes extend to even higher levels are up for a disappointment. The Elliott Wave theory states that every impulse is followed by a three-wave correction in the opposite direction. Just like wave (1) was followed by an A-B-C decline in wave (2), the entire uptrend since 2009 should make way for a big (A)-(B)-(C) decline.

In conclusion, those who bought Boeing stock near $300 in December can do well, provided that they don’t overstay their welcome. A bearish reversal near $450 can lead to a decline of 40% or more in the next 2-3 years.

Did you like this analysis? Our Elliott Wave Video Course can teach you how to uncover similar dangers yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

General Mills Stock Up by a Third in Three Months

General Mills stock plunged by 50% in the second half of 2018, following a decline from its July peak of $72.95. So, when the stock touched $36.42 in late-December most investors were not exactly optimistic about it, to put it mildly. On the other hand, the Elliott Wave analysis of GIS‘ daily price chart, published…

Read More »

Goldman Sachs to Find Elliott Wave Inspiration

A year ago, in March 2018, Goldman Sachs stock climbed to an all time high of over $275 per share. Unfortunately for the trend-followers, the rest of the year was nothing short of disastrous. GS dipped below $152 in December before closing the year at $167.05 for a total annual loss of 35.2%. The stock…

Read More »

MNST Stock Can Lose 25% From Current Levels

Despite the fact that 2018 was the best year in Monster Beverage Corp.‘s history in terms of earnings and revenue, MNST stock was another story. The share price reached an all-time high of $70.22 per share in January 2018, but eventually closed at $49.22 in December. A decline of almost 30%. Obviously, improvements in business…

Read More »

Elliott Wave Pattern to Send ORLY Stock Tumbling 20%

In our previous article we examined Advance Auto Parts stock through the prism of the Elliott Wave principle. Today, we are going to take a look at another company in the same industry – O’Reilly Automotive Inc. – whose ORLY stock exceeded $394 per share last month. But it hasn’t always been that easy for…

Read More »

AAP Stock Setting the Stage for a “Black Swan”?

The second half of 2017 was the worst time in many years for retail stocks in general. Everything from apparel, to sporting goods and grocery chains was under heavy selling pressure. The market didn’t spare auto parts retailers, as well. One of the victims was Advance Auto Parts – AAP stock. The stock crashed from…

Read More »

Horizon Pharma Stock Was Cut in Half. Then it Tripled

Horizon Pharma (NASDAQ:HZNP), headquartered in Dublin, Ireland, is a $4.7B biopharmaceutical company operating primarily in the United States. In July 2015, its stock was in the vicinity of $39.50. By May 2017, it was trading under $10 per share. We first examined Horizon Pharma stock’s prospects in September 2016, when it was searching for direction…

Read More »

OLED Stock can Halve if Rejected at Fibonacci Level

Universal Display (NASDAQ:OLED) stock is hot again. The share price is up by over 90% in less than two months, climbing from under $79 to above $151 since January 3rd. But is the bulls’ optimism warranted? Six months ago, on August 15th 2018, we examined OLED stock through the prism of the Elliott Wave principle.…

Read More »

More analyses