Boeing shares hit a fresh all-time high on Thursday, Southeast Asia order forecast revised up due to strong demand

September 22, 2017 8:21 am

According to a statement by Boeing Company (BA) earlier today, its 20-year forecast for plane orders in Southeast Asia has been revised up by 460 jets, as low-cost carriers such as Malaysia’s AirAsia, Indonesia’s Lion Air and Vietnam’s Vietjet continue to expand their operations.

Boeing shares closed higher for a second consecutive trading session on Thursday. The stock edged up 0.23% ($0.58) to $256.04, after touching an intraday high at $256.95 and also a fresh all-time high. In the week ended on September 17th the shares of the aircraft maker added 4.28% to their market value compared to a week ago, which marked the fourth gain in the past five weeks and also the best performance since the week ended on July 30th. The stock has extended its advance to 6.83% 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 64.47% so far in 2017.

“Look at countries like Vietnam, Thailand and Indonesia – that infrastructure has to grow and will grow”, Dinesh Keskar, Boeing’s vice president for Asia-Pacific and India sales, said, cited by Reuters. “Aviation is the biggest source of tourism for the countries, it is the biggest source of moving people and moving cargo.”

The company now projects that jet orders in Southeast Asia will reach 4 210 new aircraft valued at $650 billion during the upcoming 20 years. In comparison, last year the plane maker expected demand for 3 750 aircraft worth $550 billion. The new projection is based on an estimate that annual traffic will increase by 6.2%.

According to Keskar, single-aisle aircraft such as Boeing’s 737 MAX and Airbus’ SE A320 are expected to comprise over 70% of new deliveries, because the majority of flights in Southeast Asia are to be short-haul.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $274.00, with a high estimate of $302.00 and a low estimate of $203.00. The median estimate is a 7.01% surge compared to the closing price of $256.04 on September 21st.

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, today’s levels of importance for the Boeing stock are presented as follows:

R1 – $256.27
R2 – $256.49
R3 (Range Resistance – Sell) – $256.72
R4 (Long Breakout) – $257.39
R5 (Breakout Target 1) – $258.18
R6 (Breakout Target 2) – $258.51

S1 – $255.81
S2 – $255.59
S3 (Range Support – Buy) – $255.36
S4 (Short Breakout) – $254.69
S5 (Breakout Target 1) – $253.90
S6 (Breakout Target 2) – $253.57

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

Central Pivot Point – $245.35
R1 – $253.60
R2 – $258.21
R3 – $266.46
R4 – $274.72

S1 – $240.74
S2 – $232.49
S3 – $227.88
S4 – $223.28

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