Boeing Stock Plummets 4.36% In Two Days As Technicals Signal Deepening Downtrend

The Boeing (BA) has exhibited significant volatility recently, closing at $225 on 2025-08-19, marking a 3.19% decline and a two-day cumulative drop of 4.36%. This downward momentum follows a failed rebound attempt earlier in the month, suggesting ongoing selling pressure. Below is a technical analysis based on the required methodologies:
Candlestick Theory
Recent sessions show a clear bearish pattern. The August 18–19 candles form a bearish engulfing structure, closing near session lows after breaching the 50-day moving average. This confirms resistance near $232–$235, aligning with the August 12–15 consolidation zone. Key support now rests at the June 2025 swing low of $198.90, while immediate resistance is established at $229–$230 (prior support now reversed).
Moving Average Theory
The 50-day MA (approximated at $225.8) is being tested, with price closing just below it. The 100-day MA ($218.2) and 200-day MA ($191.9) slope upward, indicating the longer-term trend remains intact. However, the threat of a death cross emerges as the 50-day converges toward the 100-day MA. Sustained trading below the 50-day MA may signal a medium-term downtrend, while holding above the 100-day MA could preserve bullish structure.
MACD & KDJ Indicators
MACD (12,26,9) shows a bearish crossover below the signal line, with the histogram deepening into negative territory—a sign of accelerating downside momentum. KDJ registers oversold conditions (K: 28, D: 35, J: 15), but the J-line’s persistent downward trajectory cautions against premature reversal expectations. Divergence appears as MACD confirms the downtrend while KDJ’s oversold reading hints at potential exhaustion.
Bollinger Bands
Bands expanded notably during the August 19 sell-off, reflecting rising volatility. Price closed below the lower band ($228.5), an event often followed by mean-reversion bounces. However, follow-through selling would signal exceptional weakness. Band contraction preceding this move suggested a volatility buildup, now resolved to the downside.
Volume-Price Relationship
Distribution is evident: the two highest volume days in August (Aug 19: 8.94M shares; Jul 29: 20.16M shares) coincided with sharp declines. Conversely, rallies like July 9 (+3.7%) saw substantial volume (16.46M shares), indicating committed buying. Recent down days (Aug 18–19) saw rising volume versus prior sessions, validating bearish momentum and suggesting institutional participation in the sell-off.
Relative Strength Index (RSI)
The 14-day RSI (currently 37) retreated from near-overbought levels (69 on July 30) and now approaches oversold territory (<30). While this may foreshadow a technical bounce, RSI has room to decline further during strong trends. Bearish momentum dominance is confirmed as RSI failed to breach 60 during the early August rebound.
Fibonacci Retracement
Drawing from the June 27 low ($198.90) to the July 29 high ($242.69), key retracement levels offer support targets: 38.2% at $226.50 (recently breached), 50% at $220.80, and 61.8% at $215.10. The latter aligns with the 100-day MA and psychological support at $215, forming a high-probability confluence zone should selling persist.
Confluence and Divergence
Confluence emerges at $215–$220, where the 100-day MA, Fibonacci 50–61.8% zone, and volume-based support converge. A bearish divergence exists between price and RSI: new August lows weren’t confirmed by lower RSI troughs, hinting at weakening downward momentum. However, MACD and volume validate the current downtrend, suggesting cautious interpretation of divergences. The breakdown below the 50-day MA and Fibonacci 38.2% level ($226.50) shifts near-term bias bearishly, requiring a recovery above $232 to invalidate this structure.