Boeing Co's (NYSE:BA) stock is flying low as the company battles a machinist strike that has forced tens of thousands of workers off the job.
In a bid to cut costs, Boeing has furloughed thousands of U.S. employees, executives, and non-essential contractors. CEO Kelly Ortberg confirmed the furloughs in a memo, adding that these steps are necessary to preserve cash amid the ongoing labor disruption.
The strike began after more than 30,000 machinists in Seattle and Oregon rejected Boeing's latest contract offer, with 96% voting to walk off. Despite a 25% raise on the table, workers argued the offer failed to match the skyrocketing cost of living in the Seattle area. Negotiations remain tense, and the union's frustration is mounting.
Boeing Chart Suggests Turbulence Ahead
Boeing's stock price has been unable to lift off amid this chaos. At $155.30, BA is below its five, 20, and 50-day exponential moving averages (EMAs), signaling a strong bearish trend.
Chart created using Benzinga Pro
The eight-day simple moving average, at $157.91, and the 20-day SMA, at $164.06, all signal more downside ahead.
Additional dark clouds hover as the 50-day SMA is at $172.00, while the 200-day SMA sits at $192.33, indicating that Boeing's stock is technically bearish across the board.
Read Also: Boeing Stock Continues To Fall After Announcing Hiring Freeze, Other Cost Cuts Amid Workers' Strike
Chart created using Benzinga Pro
The MACD (Moving Average Convergence/Divergence) is a negative 4.85, reinforcing the bearish momentum.
Boeing stock is currently nearing oversold territory, with an RSI of 36.57, indicating the potential for some short-term relief. However, this offers little comfort to investors at the moment.
Even the Bollinger Bands ($150.30 – $182.72) scream bearish, with Boeing stock trading in the lower band, signaling continued pressure.
As Boeing navigates this turbulence, investors may need to brace for further dips before clear skies return.
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