Boeing shares rebound on Tuesday, company faces unfinished 737 jet pile-up at a facility near Seattle

According to a report by the Wall Street Journal earlier this week, in an attempt to respond to rising demand for single-aisle, fuel-efficient planes, Boeing Company (BA) has faced a peculiar issue – a lack of space where to store unfinished 737 jets at its facility near Seattle.

One possible location in July was the taxiway of the Renton, Washington airport in proximity to a Boeing facility in the same area.

Boeing shares closed higher for the first time in the past five trading sessions in New York on Tuesday. The stock went up 1.01% ($3.46) to $346.25, after touching an intraday low at $339.28, or a price level not seen since August 16th ($338.30).

Shares of Boeing Company have surged 17.41% so far in 2018 compared with an 8.34% gain for the underlying index, S&P 500 (SPX).

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

“Boeing is running out of space,” Gregg Zimmerman, Renton public works administrator, said in a July 27th memo to city council members, cited by the WSJ. “They have encountered an emergency production challenge that threatens to interfere with their ability to keep their airplane production lines running.”

According to the WSJ, the delays were due mostly to suppliers such as fuselage maker Spirit AeroSystems Holdings Inc and engine manufacturer CFM International.

Boeing said it intended to boost its monthly production rate to over 57 737 jets in 2019, up from a current rate of 52 aircraft per month. The plane maker also said it had booked orders for nearly 4 500 737 MAX jets. In July, the company managed to deliver only 29 737 aircraft.

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 19.28% upside compared to the closing price of $346.25 on September 4th.

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, todays levels of importance for the Boeing stock are presented as follows:

R1 – $346.90
R2 – $347.54
R3 (Range Resistance – Sell) – $348.19
R4 (Long Breakout) – $350.12
R5 (Breakout Target 1) – $352.38
R6 (Breakout Target 2) – $353.43

S1 – $345.60
S2 – $344.96
S3 (Range Support – Buy) – $344.31
S4 (Short Breakout) – $342.38
S5 (Breakout Target 1) – $340.12
S6 (Breakout Target 2) – $339.07

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