The new South African COVID variant destroys the world’s stock exchanges. The hardest hit are obviously the travel sector stocks and those related to this sector. Over the weekend, however, more reassuring news came from South Africa: the new Omicron variant has mild symptoms. The WHO, however, has raised its guard to “worrying” for Omicron’s ability to develop many variants, perhaps capable of piercing through vaccines. Therefore, the situation is still uncertain and the technical behavior of the stock last Friday shows this well. For now, prices remain trapped between the static resistance in the $204 area and the support in the $192 area. These are the levels to be monitored.
Boeing [BA] is up $201 (+1.7%) in pre-trading. Yesterday, it closed at $197.8 (-0.3%). The stock must be monitored carefully: last Friday, it pierced the first important support at $200, but the developed candle (hammer) was denied yesterday, not closing above the closing of the candlestick pattern. In any case, we maintain the short entry signal only at the break in the closing session of the $192/$191 area, with the targets outlined below. If, on the other hand, Boeing were to recover and exceed the $204/$205 area then there would be a recovery of strength.
We recommend going SHORT on the action if the stock closes below $192 by buying the Leverage Shares Boeing -1X ETP (ISIN: XS2297551454), with a target towards $178 and $160. Alert/stop loss should be above $200 (daily closing).