Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Boeing Crisis Set to Aggravate as FBI Joins Investigations, But Stock Remains Resilient

Companies / Company Chart Analysis Apr 05, 2019 - 12:27 PM GMT

By: ElliottWaveForecast



  • The two Boeing crashes in late 2018 and March 2019 killed more than 300 people.
  • FBI assisting Federal transportation authorities in investigations leading to the aircraft’s certification.
  • Possible conflict of interest between FAA and Boeing management suspected.
  • Europe and Canada say they are conducting their own reviews into Boeing’s changes to the inflight control systems.
  • Boeing’s woes would be compounded and put pressure on the stock if airlines start cancelling pre-booked orders.
  • Boeing stock resilient until now but could slump if prices break the recent lows of $363.

The recent Boeing 737 Max 8 crash in Ethiopia has led to an unprecedented crisis for the world’s largest manufacturer of passenger jets. Only a few months back, Max 8 was the most sought after passenger transport with about 371 jets flying to various destinations and about 5000 firm bookings, the kind of success aircraft manufacturers aim to accomplish.

But the fatal crash by Ethiopian Airlines on March 10th has changed all that. Not only has it led to a massive worldwide stir with aviation authorities across continents grounding the jets, even passengers and crew were nervous to fly on them before the ban, and unless Boeing comes up with a solution quickly, the future of the US aircraft manufacturer’s large order book looks to be in jeopardy.

Boeing is not new to this kind of crisis. In the late 1965 and early 1966, four new 727 passenger jets crashed while attempting to land at US airports with two crashes occurring within a few days of each other. Although, concerns about the jet quickly faded after Boeing ascertained that the aircrafts are safe, the planes were a major success and Boeing sold more than 1,800 jets before retiring them in January this year. This time around too, the company is hoping passengers will get over the fear of flying the 737 Max planes even as the company’s engineers scramble to fix the flight’s automated control systems, the key issue which is likely to have caused the fatal crashes.

With new shocking facts being revealed every day, the Federal Bureau of Investigation (FBI) has joined the widening probe to determine how the aircrafts were deemed safe and certified even as reports emerge that pilots flying the Max 8 were trained on the operational aspects of the flight on IPads with no information provided on the MCAS.

While Boeing was able to quickly recover from the 1965-66 crash, this one could lead to an unusual prosecution, the first for the aircraft manufacturer as critics question the FAA’s urgency in certifying the aircraft without thoroughly reviewing the jet’s technical documents.

Coming to the performance of Boeing’s (BA) stock, the fundamentals are robust with the company’s revenue jumping more than 8-percent to $101.12 billion in the 12-months to December 2018 from $93.39 billion the previous year. Likewise, the diluted EPS spiked to $17.85, a solid growth of about 33- percent in FY 2018 from a year earlier, boosting the company to raise the dividend paid to shareholders from $5.97 in 2017 to $7.19 per share last year.

On charts, the company’s shares have shown resilience up until now in the face of the current crisis with prices rebounding from key chart supports at $367.00 (the gap between January 29th – 30th 2019) after sliding more than 10 percent from the March 8th close. The stock is forming a pennant on the daily chart and in the next few sessions, prices are expected to narrow to $370-380. If prices break below the recent lows of $363.00, the stock could plunge by $55-60.

Boeing (BA) 4 Hour Elliott Wave Chart

According to Elliott Wave Analysis, Boeing is due for a sharp pullback from the March 1st highs of $446.01. The first leg of this correction ended at $361.53, and prices are due for a rebound before the next nosedive.


The fatal crash involving Boeing’s new 737 Max 8 presents a major dilemma to the world’s largest airplane manufacturer. In addition to the waning confidence of flyers, the ongoing investigation by the FBI is likely to add to the vulnerability of the company’s shares. The long term fundamentals of the company remain robust, but in the short term, shares of Boeing Inc. could witness the biggest correction since 2003.

By EWFHendra

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2019 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules