Boeing share price: where now after worse-than-expected results?
Despite announcing a worse-than-expected loss, Boeing stock has shown some initial strength in pre-market trading.
Boeing earnings confirm airline malaise
Boeing's numbers provide confirmation of the malaise affecting the airline industry and the global economy generally. Demand for planes has dropped dramatically, with the aircraft maker announcing a first quarter (Q1) loss of $641 million. Boeing was already reeling from the continued grounding of its key 737-Max airline due to safety concerns, but now it is cutting production of other models like the 787 Dreamliner.
Echoing warnings from IAG’s British Airways, Boeing said that it will take some time for passenger travel to pick up once again in the wake of the coronavirus crisis, with the Boeing chief executive officer (CEO) suggesting it will be around two or three years before demand returns to the levels seen in 2019.
Boeing suffered a loss of $1.70 per share, above forecasts of $1.61, but the initial reaction from the stock in pre-market trading (tradeable 24-hours on the IG platform) suggests some optimism among investors now that the news is out.
What next for the Boeing share price?
From a chart perspective, the stock has been building a base above $120 since the beginning of April. This level has held back any further downside, after the price rebounded sharply in late March. However, trendline resistance from the 26 March high at $187 has continued to hold back gains. A break above $140 would clear trendline resistance and potentially bring gains towards $160 and $187 into view.
Alternatively, a close below $120 would likely signal a renewal of bearish momentum, which may bring the March lows at $90 back into view.
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