The Boeing Pullback Is Only Getting Worse

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Boeing (BA) has become a falling knife.

And, as we noted on Jan. 7, “Investors may want to short Boeing stock.”

Since its recent incident with the fuselage coming off the plane, the stock gapped from about $245 to $217.70 so far.  This morning, BA is down another $6.84 in pre-market. All after Wells Fargo downgraded the stock to an equal weight rating.

“Analyst Matthew Akers wrote in a note to clients that the risk of 737 Max jet production/delivery impact has “significantly” increased after Alaska Airlines Flight 1282’s (737 Max-9 aircraft) door ripped off over Portland earlier this month,” as noted by Zero Hedge. “Given BA’s recent track record and greater incentive for FAA to find problems, we think the odds of a clean audit are low,” the analyst added.

Technically, BA doesn’t have any support until about $177.

Below that, the next line of support is $169.15.