Boeing share price is up by over 8% in today’s trading despite problems with the Boeing 737 Max. As of this writing, the stock is up close to 12 points at 153.53.
Last year, the company grounded its Boeing 737 Max units after it was linked to two fatal crashes. It has since been working to get its certification from the Federal Aviation Administration that the 737 Max is safe enough to fly. However, reports revealed that the company found two software problems with the aircraft. One of which has the potential to disengage the pilot during landing.
Despite this, investors reacted by pushing the Boeing share price higher. There have not been many updates on the Boeing 737 Max. It would seem that market participants treated the news more as a development rather than monumental problems for the company. It also helped that Boeing affirmed that it is still on track to get the 737 Max back on service in the middle of 2020.
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On the 1-hour time frame, it can be seen that Boeing share price is on an uptrend. This is evidenced by the rising trend line that becomes apparent when you connect the lows of March 18, March 23, April 2, and April 3. The stock has some room to trade lower and still maintain its uptrend with trendline support around 133.06. Reversal candlesticks around this price could suggest that Boeing share price will continue trading higher. On the other hand, a strong close below the 133.00 handle could mean more downside potential. Near-term support would be around 120.20 where it bottomed on April 2.
Alternatively, if there are enough buyers in today’s trading, we may not even see a pullback on Boeing share price. A close above yesterday’s high at 164.46 could indicate that the stock is on its way to its March 26 highs at 182.95.