Boeing shares gain a fourth straight session on Friday, jet deliveries match the company’s 2016 target, new orders – below target

January 9, 2017 10:37 am

On January 6th Boeing Company announced it delivered 748 aircraft during 2016, while booking orders for 648 jetliners at the amount of $94 billion at list prices. The plane manufacturer had forecast that 2016 deliveries would be within the range of 745-750 jets. Boeing’s delivery total may outstrip that of its European competitor, Airbus. The latter projects a total of 670 jets delivered in 2016, while the actual figures are due to be reported on December 11th.

Boeing shares closed higher for a fourth consecutive session on Friday last week. The stock edged up 0.25% ($0.39) to $159.10, with the daily high and the daily low being at $159.66 and $157.89 respectively. On January 5th it reached $159.70, or a level not seen since December 13th ($160.07). In the week ended on January 8th the shares of the plane maker added 2.20% to their market value compared to a week ago, which marked the best performance since the week ended on December 11th. The stock advanced 3.40% in December to log its fourth straight month of gains. For the entire 2016, the shares of the DJIA-featured manufacturer gained 7.67%.

Boeing’s “book to bill” ratio, comparing new sales to deliveries, dropped to lows unseen since 2004, as airlines curbed shopping for large widebody jets.

According to analysts, the company’s new orders decreased at a lesser rate than anticipated in 2016, which was probably down to more aggressive sales campaigns at the end of the year. As far as 2017 is concerned, “it’s going to be tough for Boeing not to get more aggressive on pricing”, Ken Herbert, an analyst at Canaccord Genuity, said, cited by Reuters. Rival manufacturer Airbus benefits from recent US Dollar appreciation in terms of pricing.

Boeing’s deliveries were also affected by initiated production of the company’s new 737 MAX narrowbody jet in Renton, Washington, a model taking more time to assemble compared to older 737 aircraft.

The delivery process will probably accelerate during the current year, as 737 MAX planes which boosted Boeing’s inventory are shipped. A moderating factor will likely be the expected 40% cut in 777 widebody jet output. 777 deliveries are projected to shrink to 3.5 planes per month in 2018 from the current rate of 8.3 planes a month, as Boeing focuses on production of its 777X model.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Boeing stock are presented as follows:

R1 – $159.26
R2 – $159.42
R3 (Range Resistance – Sell) – $159.59
R4 (Long Breakout) – $160.07
R5 (Breakout Target 1) – $160.64
R6 (Breakout Target 2) – $160.88

S1 – $158.94
S2 – $158.78
S3 (Range Support – Buy) – $158.61
S4 (Short Breakout) – $158.13
S5 (Breakout Target 1) – $157.56
S6 (Breakout Target 2) – $157.32

By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:

Central Pivot Point – $158.00
R1 – $160.80
R2 – $162.49
R3 – $165.29
R4 – $168.08

S1 – $156.31
S2 – $153.51
S3 – $151.82
S4 – $150.12

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