Is This Time To Buy Boeing Stock? This Chart Say Yes.

Stock in Boeing is on the move toward breaching a key level. If it does so, it would signal that investors expect the aerospace recovery to continue apace in 2021, as well as indicating traders can expect more gains for the the commercial-aerospace giant.

Boeing (BA) shares were up more than 4% near midday on Wednesday. At more than $234, the stock was approaching levels last reached in December, when the first Covid-19 vaccines began to be rolled out.

If shares can make it above $240 or $245, the next stop, technically speaking, looks to be $300 a share, where the stock was before the pandemic hit.

The technical discussion, focusing on how past moves in a stock can affect the outlook, meshes to some extent with the fundamental case. Shares are performing better after the approval of another Covid-19 vaccine, produced by Johnson & Johnson (JNJ). More vaccines raise the possibility that air traffic will come back faster than analysts currently project. That would be good for Boeing, as well as Airbus.

Airbus shares have already closed above levels reached in December. Shares were up about 0.8% in overseas trading Wednesday and might be on their way to roughly $150, given that the trading pattern in that stock has been similar to Boeing’s..

At $150, Airbus stock would be near its all-time high. That might be too big a move, given that global air travel is still depressed. But Airbus is doing a little better for the same reason Boeing is doing worse: Boeing spent almost two years fixing its troubled 737 MAX jet, which competes with the Airbus A320 in the market for narrow-body jets. Boeing’s all time high is about $440.

If Boeing hits $300 and Airbus hits $150, the combined value of the two biggest airframe makers on the globe, including debt, would be about $330 billion. That’s roughly 10% below their value before the pandemic and the worldwide grounding of the 737 MAX jet. That 10% is just one rough measure of how much the stocks could rise after the pandemic.

Boeing’s gain is a big reason the Dow Jones Industrial Average, weighted according to price, is outperforming the S&P 500, which is weighted according to market capitalization. Boeing’s $200-plus stock price is one of the five highest in the Dow. Boeing was the largest point gainer in the Dow on Wednesday. adding almost 70 points.

The Dow, overall, was up about 50 points, or 0.2%, in midday trading. The S&P 500 was down 0.3%.