Boeing Shares Drop to Crucial Support Level Following Downgrade

Most travelers prefer to avoid 737 MAX aircraft

Boeing Company (BA) shares declined over 3% during Tuesday's trading, reaching critical support near the 200-day moving average amid fresh disclosures and survey data.

The company acknowledged that it unintentionally issued an alert to pilots indicating a mismatch in flight data settings on the 737 MAX—set as optional rather than standard like previous 737 models—but failed to inform regulators of this issue for over a year. Although Boeing maintains this omission did not compromise safety, the alert is believed to have contributed to the two recent crashes that resulted in a global grounding of the aircraft.

Barclays analyst David Strauss downgraded Boeing to Equal Weight and reduced the price target from $417.00 to $367.00, citing a potentially prolonged recovery timeline for 737 MAX production. In a survey of 1,756 passengers across North America and Europe, Strauss and his team discovered that 52% would opt for a different plane if given a choice, with only 39% willing to fly on the MAX in the coming months.

Technically, Boeing's stock broke below a descending triangle pattern, reaching the 200-day moving average at $361.63. The relative strength index (RSI) dipped close to oversold territory at 34.76, while the moving average convergence divergence (MACD) showed a bearish crossover. These signals indicate potential further declines following a consolidation phase.

Investors should monitor for consolidation below the trendline support and near the 200-day moving average. A breakdown beneath these points could push the stock toward the S2 support level at $344.02. Conversely, a rebound above trendline resistance might target the 50-day moving average at $386.82 or the R1 resistance at $396.59, though this outcome appears less probable given the prevailing bearish outlook.

The author does not hold any positions in the mentioned stock(s) except through passively managed index funds.

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