Boeing shares rebound on Tuesday, company boosts forecast for Chinese plane purchases

September 12, 2018 9:25 am

Boeing Company (BA) announced on Tuesday it now expected purchases of 7 690 new aircraft for about $1.2 trillion by the Chinese airlines over the period to 2037, as air carriers seek to respond to rising consumer and business demand for air travel.

The new estimate represents an upward revision from a prior forecast, which the US company made in 2017. Back then, Boeing expected purchases of 7 240 new jets over the period to 2036.

Boeing shares closed higher for the fourth time in the past ten trading sessions in New York on Tuesday. The stock went up 0.99% ($3.39) to $345.25, after touching an intraday low at $337.87, or a price level not seen since August 15th ($328.03).

Shares of Boeing Company have surged 17.07% so far in 2018 compared with an 8.01% gain for the underlying index, S&P 500 (SPX).

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

About three quarters of the 7 690 new jets, ordered over the upcoming two decades, will probably be single-aisle aircraft, Boeing said.

At the same time, Chinese airlines’ fleet of widebody aircraft will probably need 1 620 new additions, the plane maker said.

Boeing also forecast that China’s share in global commercial airplane fleet would increase to 18% by the year 2037, up from 15% at present.

In order to support its fleet, China will probably require more than $1.5 trillion in commercial services, the company said.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $416.00, with a high estimate of $515.00 and a low estimate of $320.00. The median estimate represents a 20.49% upside compared to the closing price of $345.25 on September 11th.

The same media also reported that 15 out of 24 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 6 – as “Hold”.

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 – $346.05
R2 – $346.85
R3 (Range Resistance – Sell) – $347.65
R4 (Long Breakout) – $350.05
R5 (Breakout Target 1) – $352.86
R6 (Breakout Target 2) – $354.17

S1 – $344.45
S2 – $343.65
S3 (Range Support – Buy) – $342.85
S4 (Short Breakout) – $340.45
S5 (Breakout Target 1) – $337.64
S6 (Breakout Target 2) – $336.33

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

Central Pivot Point – $347.30
R1 – $355.33
R2 – $361.37
R3 – $369.40
R4 – $377.42

S1 – $341.26
S2 – $333.23
S3 – $327.19
S4 – $321.14

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