Boeing shares fall for a fourth straight session on Friday, company awarded contract for aircraft carrier-based refueling drones

According to a statement by the US Department of Defense earlier this week, a contract estimated at $805 million has been awarded to Boeing Company (BA) in relation with the design, delivery and support of 4 unmanned drones, which will be based on aircraft carriers and used to refuel US Navy aircraft.

Boeing shares closed lower for a fourth consecutive trading session in New York on Friday. It has also been the steepest daily loss since August 15th. The stock went down 1.18% ($4.11) to $342.79, after touching an intraday low at $341.58, or a price level not seen since August 16th ($338.30).

Shares of Boeing Company have surged 16.24% so far in 2018 compared with an 8.52% 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.

The contract is expected to be finalized in 2024.

Last year, a request for proposals was published by the US Navy in relation with a drone that is capable of refueling and extending the combat range of fighter aircraft such as Boeings F/A-18 Super Hornets and EA-18G Growlers or Lockheed Martins F-35 jets.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $413.00, with a high estimate of $515.00 and a low estimate of $320.00. The median estimate represents a 20.48% upside compared to the closing price of $342.79 on August 31st.

The same media also reported that 14 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 6 – as “Hold”.

Daily and Weekly Pivot Levels

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

R1 – $343.18
R2 – $343.57
R3 (Range Resistance – Sell) – $343.96
R4 (Long Breakout) – $345.14
R5 (Breakout Target 1) – $346.51
R6 (Breakout Target 2) – $347.08

S1 – $342.40
S2 – $342.01
S3 (Range Support – Buy) – $341.62
S4 (Short Breakout) – $340.44
S5 (Breakout Target 1) – $339.07
S6 (Breakout Target 2) – $338.50

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

Central Pivot Point – $346.68
R1 – $351.79
R2 – $360.78
R3 – $365.89
R4 – $370.99

S1 – $337.69
S2 – $332.58
S3 – $323.59
S4 – $314.59