$BA, The Boeing Company

$BA, The Boeing Company

$BA Daily Chart

Trade Date: 07/26/17

The Boeing Company destroys earnings, flying their stock to All Time Highs. Cutting costs while boosting profits allowed the company to boast a net profit of $1.76 billion. All Time High, Earnings Beat, High Relative Volume. Anyone else buy this first class ticket?

Trade Style: Day Trade

Position Bias: Bullish

Technical Criteria

  • Price Change: + $ 8.34 and + 3.93 %
  • Premarket Volume: 228,829 shares
  • Daily Average Volume: 3 million shares
  • Average True Range: $ 2.22

Entry Price & Time

            Ever see price action make big pops? Well, $BA was certainly not one of those. In fact, $BA was a slow grinder, just grinding higher and higher. So what's motivating the difference between these two types of price action? Institutional buying. Big banks or Hedge Funds are slowly and steadily building into a position, a position so large that they need to enter in slow increments. These are the best types of stocks to buy into because they're not motivated by emotion. These are real heavy hitting buyers entering into these big plays and $BA was the play of the day.

            $BA grinds higher right at the open until about the 4th candle when it starts to get exhausted. This was our entry. Once ORB setup developed and the tops of those wicks were overtaken, that was the best time to buy. Got caught in a bit of a price slip in my entry. Stop was placed below the low of the day. 

            Entry Price: $ 225.78

            Entry Time: 9:35 AM

            Stop Price: $ 223.39

            Risk: $ 2.39

$BA Entry on 1 min. chart

Exit Price & Time

            Exit Price: $ 232.89

            Exit Time: 3:49 PM

$BA Exit on 5 min. chart

Results and Evaluation

            This trade had the makings of a monster move. Even if this didn't play out, we need to try to always hit setups with as many probabilistic factors in its favor as $BA did. In fact, the way that $BA closed near highs and pushed harder into the close shows that buyers are still interested in entering this stock. 

$BA has a potential for a secondary run.

Risk: $ 2.39

Reward: + $ 7.11

R Multiple: + 2.97 R