- The Boeing (BA) stock bounced up from a prolonged decline.
- The BA stock price dropped about 20% over the past 2 months.
- Boeing’s BA stock closed at $196.07 with a gain of 1.31% in the past intraday session.
The Boeing (BA) stock price dropped about 20% over the past 2 months. It dropped from the resistance level of $230.43 to the annual low of $182.55. After forming strong support at $182.55, the price is on the recovery path from its prolonged downtrend. The BA stock price was $196.07 at press time, with an intraday gain of 1.31%.
Hamas-Israel Conflict Elevated the BA Stock Price
The BA stock price is on the path of recovery and surged about 9.8% since October 6, 2023. However, the sudden surge was due to the fresh conflict between Hamas and Israel. The Dow Jones U.S Aerospace & Defense Index surged roughly 6.7% due to the recent conflict in the Middle East.
The conflict puts the spotlight on major weapon manufacturers like Lockheed Martin (LMT), RTX Corp. (RTX), and Boeing (BA). Furthermore, Israel’s Aerospace Defense Industries play a vital role in supporting Boeing’s F-15 program. They provide avionics and spare parts for aircraft like the V-22 Osprey, T-38 Talon, and T-45 Goshawk. Boeing has sped up the delivery of 1,000 intelligent bombs to Israel amid the war, as per Fox News.
The Israeli Prime Minister Benjamin Netanyahu recently said this will be a long war. There is a high probability of observing further hostility among the two parties. Thus, it will offer more growth opportunities for defense stocks.
The recent retracement leveraged the year-to-date (YTD) return. It is now reflective of a positive growth of 1.62% YTD. The BA share has risen roughly 9.8% since October 6, 2023. The surge encouraged the investors, and more buyer participation was witnessed. If the buyers’ involvement increases, the price might bounce towards the $214.10 support level.
On the other hand, if sellers take control and push the price below the $183.20 annual low, then it might melt toward the $170 mark. The current market capitalization of Boeing Co. is $118.27 Billion and the average trading volume is 6.285 Million.
Will BA Stock Price Bounce Towards the $210 Mark?
On the daily chart, Boeing’s (BA) stock price is hovering close to the 20-day EMA and looking for a pullback to retest the previous support level of $214. Moreover, the chart displays that BA stock is close to the demand zone and on the recovery path.
If a bullish trend sustains, the price may recover in the upcoming sessions. On the contrary, if bearish momentum prevails, the price might witness a further selloff. The RSI has just bounced up from the oversold zone and is now hovering near the 50-neutral zone. It indicates that the BA share price has diverted from the bears’ dominance toward bullish momentum.
Conclusion
Amid the Hamas-Israel conflict, the primary defense stocks have surged along with BA stock, since October 6, 2023. Moreover, the BA stock is close to the demand zone, signaling a recovery in the upcoming sessions. Technical parameters suggest neutrality, but the analyst ratings favor the buyers’ side.
Technical Levels
Major resistance: $241.58 and $243.10
Major support: $182.55 and $192.41
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.