Can Boeing (BA) Fly High on Earnings? Chart Technicals Show Challenges

Core Viewpoint - Boeing is expected to report a significant loss in its upcoming earnings announcement, with an adjusted EPS of negative $246 and revenue of $21.92 billion, amid ongoing labor strikes affecting operations [1]. Earnings Expectations - The company is currently facing a three-month strike with its St. Louis area workers, which has impacted its operational performance and stock price [1]. - Despite the anticipated loss, there are signs of improvement in Boeing's turnaround plan and production numbers [3]. Stock Performance - Boeing's shares have increased by over 25% this year, indicating a strong upward trend despite recent volatility [2]. - The stock has shown a double bottom pattern around the $225 mark, which was previously a support level [5]. - Recent trading activity suggests a potential breakout if the stock can bounce back from the $222 support level [10]. Technical Analysis - The 50-period moving average is trending downward but is approaching a solid support level around $210 [6]. - There is a bullish divergence indicated by the RSI, suggesting potential upward momentum ahead of the earnings announcement [7]. Options Market Activity - Early trading showed a preference for call options, indicating speculative buying ahead of earnings, but the put-call ratio has shifted towards a more defensive stance [12]. - Currently, about 85% of the puts being traded are at the ask or mid, suggesting protective measures rather than speculative selling [12].