Boeing (BA): Rejected at 200D SMA

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Technical Analysis: 

Rejected at 200D SMA with bearish engulfing candlestick reversal pattern. Expect to move in bearish direction to the next support of $120. Medium term range bound between $120 and $130.

BA Sept1-2014

Fundamental Analysis:

BA Fundamental Sept1-2014Trade Setup

  • Strategy: Short Term Directional Bearish Trade.
  • Target: $120
  • Short Call Spread BA 125/130 Oct 2014 (2 contracts)
  • Max gain @ expiration $536
  • Max loss @ expiration $464
  • B/E @ expiration $127.65
  • Reward vs Risk (RoC) = 1.15
  • Probability OTM (short leg) = 43.69%
  • Profit target = $364 (at $120 support)
  • Exit Conditions:
    • When there is a trend reversal at the support ($120)
    • Break $130 resistance.
    • Reach 80% of Max Profit (ie. $429)

Original Post by Marubozu My Stocks Investing Journey

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