Boeing shares rebound on Friday, company downplays speculation over redesign of new mid-sized jet

A senior Boeing executive said over the weekend that a higher priority was put on passengers instead of cargo belly-space in the companys potential new mid-sized jet. Therefore, any speculation that the new aircraft might be redesigned so that it could satisfy freight demand from airlines in Asia has been downplayed.

Boeing shares closed higher for the seventh time in the past eleven trading sessions on Friday. The stock went up 1.29% ($4.56) to $356.72, after touching an intraday high at $358.15, or a price level not seen since May 30th ($358.92).

Shares of Boeing Company have surged 20.96% so far in 2018 compared with a 2.28% gain for the underlying index, S&P 500 (SPX).

In 2017, Boeing’s stock soared 89.43%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

According to Reuters, citing industry sources, the proposed jet having 220 to 270 seats has been designed with an elliptical fuselage, which increases its aerodynamics and makes it less expensive to fly. However, such a design leaves less space for cargo.

Some Asian airlines, and more specifically, those based in China, have been more reserved about such a proposal, because of e-commerce growth in their home country.

“We don’t want to over design an airplane just to carry belly cargo, especially when I can make an airplane that becomes more efficient delivering and carrying passengers”, Randy Tinseth, Boeing’s vice president of marketing for commercial planes, said in relation with the matter, cited by Reuters.

The plane maker has yet to decide if the new jet should be launched. According to Tinseth, the company has contacted more than 50 airlines that “liked the efficiency” of the present design.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $401.00, with a high estimate of $500.00 and a low estimate of $289.00. The median estimate is a 12.41% surge compared to the closing price of $356.72 on June 1st.

The same media also reported that 16 out of 27 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 8 – as “Hold”.

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 – $357.06
R2 – $357.40
R3 (Range Resistance – Sell) – $357.73
R4 (Long Breakout) – $358.75
R5 (Breakout Target 1) – $359.93
R6 (Breakout Target 2) – $360.43

S1 – $356.38
S2 – $356.04
S3 (Range Support – Buy) – $355.71
S4 (Short Breakout) – $354.69
S5 (Breakout Target 1) – $353.51
S6 (Breakout Target 2) – $353.01

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

Central Pivot Point – $356.12
R1 – $361.57
R2 – $366.43
R3 – $371.88
R4 – $377.34

S1 – $351.26
S2 – $345.81
S3 – $340.95
S4 – $336.10