In terms of stock news, we had had some good news for Boeing (NYSE:) for the first time in a very long time. Ryanair (NASDAQ:), an Irish airline whose stock has recovered all of its losses year-to-date, sealed a landmark for its 737 Max jet after this particular model was grounded for nearly 20 months. Ryanair ordered 75 more of the single-aisle aircraft.
The biggest message in this is two-fold. Firstly, Boeing has proved to the airline industry that it is ready to sell its 737 Max jets once again. This particular deal is likely to make other airlines order more aeroplanes as there was a massive discount given to Ryanair. As for Ryanair, this is really a win-win situation as it needed more planes and heavy discounts on these will only add more profit to their bottom line. Finally, it also sends a strong message to the airline industry as well, which is that airlines are expecting the traffic to return soon, and now they are getting ready to support the surge in demand.
On the weekly time frame, Boeing price looks immensely bullish. There is no doubt that bulls are back with a vengeance as the price has gone too far and too fast with respect to its 50-week simple moving average on the weekly time frame. However, in order for the bulls to declare victory, we still need the price to break above the 100 and 200-week simple moving averages on the same time frame as above. Boeing is still selling at a massive discount if we compare the stock price prior to its 737 MAX event—at the time the stock price was well over 400. As of yesterday, the stock closed at 236
Boeing Weekly Chart
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