Boeing shares close lower on Tuesday, plane maker nearing final agreement with Embraer, report states

According to a Monday report on the website of Brazils newspaper Valor Economico, citing sources familiar with the situation, Boeing Company (BA) and Embraer SA have readied contracts of their proposed partnership and are to present them to Brazils government within a two-week period.

Boeing shares closed lower for the first time in the past four trading sessions in New York on Tuesday. It has also been the steepest daily loss since June 25th. The stock went down 0.94% ($3.15) to $332.93, with the intraday high and the intraday low being at $339.62 and $332.06 respectively.

Shares of Boeing Company have surged 12.89% so far in 2018 compared with a 1.48% gain for the underlying index, S&P 500 (SPX).

In 2017, Boeing’s stock soared 89.43%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

In April, the two companies announced that the tie-up, which is to include Embraer’s commercial jet business only and not its defense and business jet operations, would lead to the establishment of a new entity, where Boeing would own a stake of 80.01%, while the Brazilian plane maker – a stake of 19.99%.

According to Valor Economico, the contracts in question specify in what way engineers from both plane makers will be divided between the new entity and a defense company, which is to be retained by Embraer SA.

In relation with the matter, Embraer said that talks were still ongoing, while it did not provide details on the contracts and did not specify a potential end date for the negotiations.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $401.00, with a high estimate of $500.00 and a low estimate of $309.00. The median estimate represents a 20.45% upside compared to the closing price of $332.93 on July 3rd.

The same media also reported that 15 out of 26 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 8 – as “Hold”.

Daily and Weekly Pivot Levels

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

R1 – $333.62
R2 – $334.32
R3 (Range Resistance – Sell) – $335.01
R4 (Long Breakout) – $337.09
R5 (Breakout Target 1) – $339.52
R6 (Breakout Target 2) – $340.51

S1 – $332.24
S2 – $331.54
S3 (Range Support – Buy) – $330.85
S4 (Short Breakout) – $328.77
S5 (Breakout Target 1) – $326.34
S6 (Breakout Target 2) – $325.35

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

Central Pivot Point – $334.74
R1 – $342.19
R2 – $348.87
R3 – $356.32
R4 – $363.77

S1 – $328.06
S2 – $320.61
S3 – $313.93
S4 – $307.25