Boeing Technical Analysis: Could the Stock Price Fall Amid Looming Strike? – Boeing (NYSE:BA)

Boeing Co BA Stock prices may be trending downwards. Support has turned into resistance and sometimes this price movement occurs just before a downtrend is formed.

That is why it is our Share of the day.

Another factor to keep in mind is that members of the International Association of Machinists and Aerospace Workers will vote Thursday on a collective bargaining agreement that calls for a 25% wage increase over four years. If the agreement is rejected and two-thirds of workers vote in favor of a strike, the walkout will begin at 12:01 a.m. PDT on Friday.

The $163 level was a support in April and August. As you can see on the chart, it has now turned into a resistance level.

Support levels can remain in place for extended periods of time due to unfortunate sellers. Some traders and investors sold when Boeing was at support levels in April and thought they had made a mistake when the stock rose shortly afterward.

Some decided to buy back their shares if they could get them at the same price they were sold for. When the price fell back to $163 in August, these remorseful sellers placed buy orders.

There were so many of these buy orders that a support was created at the same price that was previously support. Now that support has been broken and $163 has become a resistance level.

Levels that were support levels can turn into resistance levels due to remorseful buyers. Some traders and investors bought their shares when Boeing was at support levels and regretted it when the support level was broken and the price declined.

Read also: Boeing faces production shutdown as 33,000 workers vote to strike

Some of these repentant buyers decide to sell their shares. But they don't want to lose money.

As a result, now that the stock has moved back up to levels around $163, they are placing sell orders. So many of these sell orders are being placed at the level that was once support that it has now turned into a resistance level.

This could pave the way for a downward move.

Some people who have created resistance with their sell orders may become nervous. They may fear that others who want to sell will undercut them.

They know that anyone who wants to buy will go to whoever is willing to sell them the shares at the lowest price, so they decide to lower the selling price.

Other nervous sellers might notice and lower their selling prices as well. This could create a snowball effect that forces Boeing into a downward trend.

In financial markets, some price levels are more important than others due to trader psychology. Seller's remorse can keep support levels intact; buyer's remorse can turn support into resistance.

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