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.
Boeing [BA] is up to $192 (+2%) in pre-trading. Yesterday, it closed at $188.2 (-4.8%). The stock must be monitored carefully: last Friday, it pierced the first important support at $200. From here, the prices have fluctuated for a few days between the resistance at $204 and the support at $192. The breakout of the support arrived yesterday confirming the weakness of the stock. RSI also goes oversold. Today the prices, from pre-trading, seem to want to pull back on the former support at $192. A close below $192 should confirm the weakness with the bearish operating set-up.
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).