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The ongoing stock market correction is weighing on the Boeing stock price which was already facing a major slump. The shares of the aviation giant have plunged to their lowest level since November 2022, breaching the major support of $170.
On Tuesday, April 16, NYSE: BA opened at 168.14 and at press time stood 0.27% higher than its previous close. Nevertheless, despite the minor uptick, the outlook appears to be bearish.
According to the latest reports, Boeing has severed ties with the lobbying firm Cornerstone Government Affairs. The firm assisted Boeing in steering through the 737 Max disaster that occurred in February. However, both companies have yet to confirm or deny the reports.
In other Boeing news, RBC capital has lowered the price target for BA while maintaining its outperform rating. The capital management firm slashed the price target from $225 to $215.
The retail sales figures for March 2024 have just come out. The data showed that the persistent inflation didn't impact the sales. In fact, the retail sales jumped 0.7% during March, more than twice of the Dow consensus estimate of 0.3%.
The strong retail sales together with the sticky inflation numbers have significantly impacted the rate cut expectations. Consequently, most analysts are now betting on rate cuts to start from September's FOMC meeting.
The bearish retest of the $197 earlier in March flipped the Boeing stock price forecast bearish for me. The recent breakdown below $170 exhibits the intensity of the selling pressure on the aerospace stock. However, this breakdown is still not confirmed and there is some hope for the bulls if they push the price above $170.
On the other hand, in case of a confirmed breakdown, the next stop could be the demand zone that lies below $150.
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