BOEING STOCKS FALL AFTER ANNOUNCEMENT OF 737 MAX PRODUCTION DELAYS
Boeing’s stock is currently trading at 376.05-lower by 4.04% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 4.57%. The stock has pared some of its losses after the opening bell.
The company announced on Friday that it will slash 737 production rates from 52 per month to 42 per month effective from mid-April.
Boeing’s CEO said that the company is temporarily adjusting the 737 production system to accommodate the pause in MAX deliveries, allowing the company to prioritize additional resources to focus on software certification and returning the MAX to flight. The CEO further said the company is working with suppliers to minimize operational disruption and financial impact of the production rate change.
Bank of America lowered its ratings on the aerospace giant’s stock to neutral from buy, citing production cut, and the possibility of more delays in restoring service. The bank also lowered its price objective to $420 from $480.
On the technical front, the RSI is currently at 43.20% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 376.50 TAKE PROFIT AT 372.50 STOP LOSS AT 378.50