When a ‘Spring’ Fails

Price action ‘failures’ provide and edge in market positioning.

In the case of Boeing (BA), from yesterday’s post, we’re expecting continued move higher off the ‘spring’ set-up.

So far, it hasn’t happened.

Instead, BA closed lower for the day; in the pre-market today (7:28 a.m., EST), it’s trading within ticks of that close.

So, what does it mean?

If, BA opens below yesterday’s low (200.88), we have a possible spring failure in the making; especially so, if price action prints a new weekly low, below 198.75 (not advice, not a recommendation).

Boeing BA, Daily

As this post is completed, BA is trading at 201.15, just slightly above the close of yesterday.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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