Boeing Co. NYSE: BA shares are trading lower Wednesday after the company reported fourth-quarter earnings before the opening bell.
The company's earnings per share came in at a loss of $7.69, up from the loss of $15.25 per share a year ago. Sales came in at $14.8 billion, missing the estimate of $16.86 billion.
Boeing was down 3.68% at $196.50 midday Wednesday.
The pattern has ended and the stock has not seen a strong break of resistance or support, so the shares have moved lower in what traders call a descending triangle pattern. Since the end of the pattern, the stock has been moving sideways around the $205 level.
The stock trades below the 50 day moving average green and the 200 day moving average blue indicating that the stock is facing a bearish sentiment. Each of these moving averages may hold a potential area of resistance in the future.
The Relative Strength Index RSI has fallen lower the past couple of weeks and is now at 38. If the stock falls lower on the RSI, it shows that more sellers are moving into the stock and could reach the oversold region near 30. This could lead to more strong selling.
Boeing hasn't seen any strong movements since ending the descending triangle pattern, which shows that the stock is trading with a period of consolidation. If a strong volume enters the stock, it could start pushing in one direction and could start a new trend.
Bullish traders are looking to see the stock hold above the $205 level and see the RSI climb back above the middle line for a possible bullish run. Bearish traders are looking to see the stock. The moving averages for the stock have to be below the $205 level in order to see some bearish momentum.