Boeing shares fall for a second straight session on Friday, negotiations over partnership with Brazil’s Embraer at an advanced stage, paper reports

According to a report by O Estado de S. Paulo newspaper on Friday, citing anonymous sources, negotiations related to a partnership between Boeing Company (BA) and Brazils Embraer SA have reached an advanced stage.

Boeing shares closed lower for a second consecutive trading session on Friday. The stock went down 0.58% ($1.97) to $338.67, with the intraday high and the intraday low being at $341.40 and $335.05 respectively.

In the week ended on April 22nd the shares of the aircraft maker added 2.85% to their market value compared to a week ago, which marked a second consecutive period of gains. It has also been the best performance since the week ended on March 11th.

The stock has pared its advance to 3.29% so far during the current month, following a 9.48% slump in March. The latter has been the largest monthly retreat since January 2016.

For the entire past year, the shares of the NYSE-listed plane maker soared 89.43% following another 7.67% surge in 2016.

According to the local paper, the tie-up, which is expected to only include Embraer’s commercial jet business and not its defense and executive jet operations, will lead to the establishment of a new entity, where Boeing is to own an 80.01% stake, while the Brazilian plane maker – a stake of 19.99%. O Estado noted that Brazils government was in favor of such an ownership model.

Still, the deal will have to be approved by the government, which has veto power over Embraers strategic decisions.

O Estado also emphasized that one matter, which was still being discussed by the two companies, involved the appointment of a government official to the board of the new entity.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $400.00, with a high estimate of $500.00 and a low estimate of $289.00. The median estimate is an 18.11% surge compared to the closing price of $338.67 on April 20th.

The same media also reported that 15 out of 28 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 10 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Boeing stock are presented as follows:

R1 – $339.25
R2 – $339.83
R3 (Range Resistance – Sell) – $340.42
R4 (Long Breakout) – $342.16
R5 (Breakout Target 1) – $344.20
R6 (Breakout Target 2) – $345.09

S1 – $338.09
S2 – $337.51
S3 (Range Support – Buy) – $336.92
S4 (Short Breakout) – $335.18
S5 (Breakout Target 1) – $333.14
S6 (Breakout Target 2) – $332.25

By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:

Central Pivot Point – $336.23
R1 – $344.85
R2 – $351.02
R3 – $359.64
R4 – $368.25

S1 – $330.06
S2 – $321.44
S3 – $315.27
S4 – $309.09