Boeing [NYSE: BA] was highly volatile in Wednesday trading. It dipped from a high of $378.98 to a low of $370 before a rebound that saw it close the day above in positive territory. This volatility was driven by FAA remarks, that there was another potential flaw in the Boeing 737 Max. In a tweet, the FAA revealed that are still potential flaws that Boeing needs to mitigate.
Boeing ground its 737 flight in March after fatal accidents related to its systems. It has since been working on getting the planes back in flight again. Airlines across the world are also working on more comprehensive training for 737 Max pilots. In a meeting held in Montreal Canada today, more than 40 global airlines asked regulators to coordinate requirements for getting the 737 Max back in service. They also want additional and harmonized training for the crew handling these planes. This is an indicator that the market has faith in these Boeing planes, in spite of the technical issues that have become their defining feature this year.
From a look at the charts, Boeing is likely to remain volatile in Thursday trading. Though it recovered some of its Wednesday losses at market’s close, it is still trading way below the day’s resistance at $378.98. If it pushes up this level in the day, it would be a signal of bull strength and a possible green day for Boeing. On the other hand, if bulls fail to recover from this dip, bears could take control of the market. A break below $370 which is now a short-term support level, could see Boeing test new lows in the day.
From the looks of the pre-market on Boeing, it seems as though the bears are in control and it is likely to break the $370 support from yesterday.