TRADE SETUP

Where do we stand fundamentally?

Boeing ($BA) stock dropped 7.7% in premarket trading following a reported crash of an Air India Boeing 787 Dreamliner near Ahmedabad, involving 242 people. This marks the first-ever crash of a 787 model, sparking concerns about safety, potential regulatory crackdowns, and delivery delays among investors. The incident contributed to downward pressure on the Dow Jones. Investigations are ongoing, and details remain inconclusive

Boeing secured its largest-ever widebody aircraft order from Qatar Airways for up to 210 jets, including 130 Dreamliners and 30 777-9s, valued at $96 billion. The deal, announced during President Trump’s Middle East tour, includes options for 50 additional planes. This bolstered Boeing’s market position, though the 777X delivery is delayed until 2026.

The BA is being rejected by the upside resistance at 216 and is turning lower for a possible revisit of the 140 level.

For the rally to continue, we need a sustained breakout above 216. I am inclined towards a short-term trade entry, as the overall market sentiment remains fragile due to geopolitical risks and frequent Boeing plane crashes. A break below 194 is opening a test of the next support 139.

_{I am taking a near-term short-trade entry with an SL above 220 to target 140. You can buy put options as well. If the trade is stopped, reverse it to a long trade entry.}