Boeing Stock Dropped Following News of Air India Crash—These Are the Key Price Levels to Watch

Boeing (BA) shares will likely remain in focus after slumping to end last week following news that one of the company’s aircraft was involved in an Air India plane crash on Thursday.

While air safety experts have said that at this time there is no reason to think a manufacturing or design problem caused the incident, it comes as the aircraft manufacturer faces heightened scrutiny over its production processes following several mishaps involving its planes, including a door plug detaching in midair on an Alaska Airlines 737 Max 9 flight in January last year.

Boeing shares fell 4.8% on Thursday and dropped another 1.7% on Friday, closing the week at around $200. The stock still trades about 13% higher since the start of the year. In recent months, the shares have been boosted by optimism that the company could be a beneficiary in a long term trade deal with China and Beijing’s withdrawal of a ruling imposed in early April that barred the country’s airlines from taking delivery of Boeing planes.

Below, we take a closer look at Boeing’s chart and use technical analysis to identify crucial price levels worth watching out for.

Rising Wedge Pattern Breakdown

Boeing shares staged a news-driven breakdown from a rising wedge pattern in Thursday’s trading session, potentially setting the stage for a deeper retracement.

The selling, which occurred on the highest volume since last October, coincided with the relative strength index falling toward its neutral threshold, signaling accelerating downside momentum.

Amid the potential for further price swings, let’s identify crucial support and resistance levels on Boeing’s chart that investors will likely be watching.

Crucial Support Levels to Watch

Follow-through selling could see the shares initially test the $187 level. The shares find a confluence of support in this area near the upward sloping 50-day moving average and multiple peaks on the chart stretching back to May last year. This location also sits in the same neighborhood as the 38.2% Fibonacci retracement level when applying a grid from the April low to June high.

A close below this crucial price opens the door for a fall to lower support around $163, roughly in the same vicinity as the 61.8% Fibonacci retracement level. Investors may look for buy-and-hold opportunities in this region near a horizontal line that links a range of correspond trading activity over a 12-month period between April last year and April this year.

Resistance Levels to Monitor

Upswings in the stock could propel an initial rebound toward $218. This area on the chart may provide overhead selling pressure near the top of the rising wedge, which also closely aligns with a period of consolidation just below the 200-day moving average early last year.

Finally, buying above this level could see Boeing shares climb to around $245. Investors who have accumulated the stock at lower prices may look to lock in profits on a fill of the prominent January 2024 stock gap.

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As of the date this article was written, the author does not own any of the above securities.