Boeing shares fall for a second session in a row on Wednesday, China to invest over $1 trillion in aircraft during the next 20 years

According to Boeings latest forecast, airlines in China are to purchase over 7 000 aircraft at an estimated value of $1.1 trillion during the upcoming 20 years in an attempt to satisfy strong demand for local and international travel.

Boeing shares closed lower for a second consecutive trading session on Wednesday. The stock went down 1.00% ($2.38) to $234.62, after touching an intraday low at $234.36, or a price level not seen since August 21st ($234.35). In the week ended on September 3rd the shares of the aircraft maker added 1.88% to their market value compared to a week ago, which marked a third consecutive period of gains and also the best performance since the week ended on July 30th. However, the stock has extended its loss to 2.10% so far during the current month, following a 1.15% slump in August. The latter has been the first drop in the past five months. For the entire past year, the shares of the NYSE-listed plane manufacturer gained 7.67%. The stock has risen 50.71% so far in 2017.

7 240 planes are expected to be purchased during the period to 2036, which has been a revised up projection compared to what Boeing anticipated last year (6 810 aircraft potentially sold).

“Chinas continuous economic growth, significant investment in infrastructure, growing middle-class and evolving airline business models support this long-term outlook”, Randy Tinseth, Vice President of Marketing for Boeing Commercial Airplanes, was quoted as saying by Reuters. “Chinas fleet size is expected to grow at a pace well above the world average, and almost 20 percent of global new airplane demand will be from airlines based in China”, he noted.

According to Boeings latest projection, 3/4 of the 7 240 planes ordered may be of the single-aisle type. At the same time, 1 670 planes are likely to be added to the Chinese airlines widebody fleet. Boeing Commercial Airplanes marketing executive said he projected demand for widebody aircraft might increase due to higher optimism over Chinas long-term economic outlook.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $260.50, with a high estimate of $302.00 and a low estimate of $202.00. The median estimate is an 11.03% surge compared to the closing price of $234.62 on September 6th.

The same media also reported that 12 out of 26 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 11 – as “Buy”.

Daily and Weekly Pivot Levels

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

R1 – $234.94
R2 – $235.26
R3 (Range Resistance – Sell) – $235.58
R4 (Long Breakout) – $236.55
R5 (Breakout Target 1) – $237.67
R6 (Breakout Target 2) – $238.12

S1 – $234.30
S2 – $233.98
S3 (Range Support – Buy) – $233.66
S4 (Short Breakout) – $232.70
S5 (Breakout Target 1) – $231.57
S6 (Breakout Target 2) – $231.12

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

Central Pivot Point – $239.16
R1 – $243.70
R2 – $247.08
R3 – $251.62
R4 – $256.17

S1 – $235.78
S2 – $231.24
S3 – $227.86
S4 – $224.49