Boeing shares fall for a fourth straight session on Tuesday, company to acquire KLX in a deal valued $3.2 billion

According to a statement by Boeing Company (BA) on Tuesday, it intends to acquire aerospace parts maker, KLX Inc, in a cash deal valued at approximately $3.2 billion, as the US plane manufacturer seeks to expand its aircraft services business. The deal is expected to value KLX at $4.25 billion, which also includes net debt of $1 billion.

Boeing shares closed lower for a fourth consecutive trading session on Tuesday. The stock went down 1.21% ($4.02) to $329.54, after touching an intraday low at $324.30, or a price level not seen since April 24th ($323.28).

In the week ended on April 29th the shares of the aircraft maker added 0.65% to their market value compared to a week ago, which marked a third consecutive period of gains.

The stock has retreated 1.21% so far during the current month, following a 1.73% surge in April. The latter has been the seventh gain out of eight months.

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

KLX is to become part of Boeing Global Services and be merged with the US plane makers parts, equipment and services unit, Aviall.

According to Stan Deal, CEO of Boeing Global Services, the deal will result in a one-stop-shop, which will facilitate Boeings supply chain and also benefit its clients.

Reuters reminded that in February Boeings global services unit disclosed agreements worth almost $1 billion, aimed to bolster the companys higher-margin services as well as spare-parts revenue.

Boeing also said that its full-year 2018 guidance and capital deployment strategy would remain without change, as it forecasts cost savings of approximately $70 million per year by 2021.

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 a 21.38% surge compared to the closing price of $329.54 on May 1st.

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 – $330.35
R2 – $331.16
R3 (Range Resistance – Sell) – $331.97
R4 (Long Breakout) – $334.41
R5 (Breakout Target 1) – $337.25
R6 (Breakout Target 2) – $338.53

S1 – $328.73
S2 – $327.92
S3 (Range Support – Buy) – $327.11
S4 (Short Breakout) – $324.67
S5 (Breakout Target 1) – $321.83
S6 (Breakout Target 2) – $320.55

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

Central Pivot Point – $337.60
R1 – $346.14
R2 – $351.40
R3 – $359.94
R4 – $368.48

S1 – $332.34
S2 – $323.80
S3 – $318.54
S4 – $313.28