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Swing Trade Idea – (BA) – May 12, 2020

Our bearish trade for Tuesday, May 14th is BA (Boeing Co). BA is part of the Industrial Sector (XLI). XLI has experienced a 1.33% gain in the last month and its 6M trend turned neutral on May 8th. 

BA’s 1M and 6M trend turned bearish on May 1st and Feb 24th respectively. Price is forming a bearish triangle pattern as selling pressure looks likely to break below $122 support. With a technical score of 1 (out of 10), BA is a very weak stock that will likely continue lower. 

As a stop loss, if BA were to trade above $147 for multiple days, this would invalidate our analysis and consider cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $8.00.