Boeing Co.’s (BA) stock is facing headwinds as the company grapples with a machinist strike that has idled tens of thousands of workers. The strike, which began after 96% of the union’s 30,000 members in Seattle and Oregon rejected Boeing’s latest contract offer, is causing significant disruption and financial strain.
In an effort to navigate this turbulent period, Boeing has announced plans to furlough thousands of U.S. employees, including executives and non-essential contractors. CEO Kelly Ortberg confirmed the furloughs in a memo, stating that these cost-cutting measures are necessary to preserve cash reserves amid the ongoing labor dispute.
The strike has fueled frustration among workers who argue that the offered 25% raise fails to keep pace with the soaring cost of living in the Seattle area. Negotiations remain tense, leaving the future of the strike uncertain.
Boeing’s Stock Chart Shows Turbulence Ahead
The impact of the strike is clearly reflected in Boeing’s stock price. BA is trading below its five, 20, and 50-day exponential moving averages (EMAs), indicating a strong bearish trend. The eight-day simple moving average, at $157.91, and the 20-day SMA, at $164.06, further signal potential downside.
Adding to the bearish outlook, the 50-day SMA stands at $172.00 and the 200-day SMA sits at $192.33. These technical indicators suggest that Boeing’s stock is facing bearish pressure across all timeframes.
The MACD (Moving Average Convergence/Divergence), currently at -4.85, reinforces the bearish momentum. While the RSI (Relative Strength Index) of 36.57 indicates a possible short-term rebound, it offers little reassurance to investors.
Even the Bollinger Bands, which represent a range of potential stock price movement, point to bearish sentiment. Boeing stock is currently trading in the lower band of the Bollinger Bands ($150.30 – $182.72), suggesting continued downward pressure.
As Boeing navigates this turbulent period, investors should brace for further dips in the stock price before a clearer path emerges.
