Close to Key Levels - Boeing

Published on Tuesday, 07 September 2010 07:52 Written by TradersHuddle Staff

New York, September 7th (TradersHuddle.com) - Shares of Boeing Co. (NYSE:BA) closed the trading session at $64.64 near its 50 day and 200 day moving averages currently set at $65.04 and $64.19 respectively. Boeing's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

The Boeing Company , together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company's family of the commercial jet aircrafts includes the 737, 747, 767, 777, and the new generation 787 Dreamliner. Boeing is based Chicago and founded in 1916.

Boeing price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Boeing with a small position and wait for the stock to break out above the 50 day moving average at $65.04, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $64.19 breaks it could mean further downside in the horizon for Boeing.