Hey what's going on everyone, i hope you're having a great day, i'm matt, and i'm here to give you my personal outlook on boeing in this video i'll, give you a quick overview of the company and investment outlook and, finally i'll do a technical analysis. Breakdown of boeing stock, it would be much appreciated if you could hit the like button and subscribe to the channel. It really helps with getting this video in front of other people. If you enjoy this style of content, let me know in the comments below what stock.

I should do an analysis on next, don't forget to turn on your notifications, so you don't miss any of the new videos to start. Let's cover what boeing does from a high level, they're a staple american company that happens to be the largest aircraft manufacturer beyond that they also build satellites and do other forms of defense contract work. In fact, the us government is their largest customer in the year 2019. Boeing's revenue was just below 100 billion dollars, their commercial airplanes division attributed roughly 50 of that, while their defense space and security systems was 30.

It's no secret that the united states department of defense relies heavily on boeing for both technological development and military procurement. For the past three years, boeing has been the second largest defense contractor for the u.s government. Before we jump into an investment outlook. I want you to know that i currently do not own any boeing stock.

I also have no plans to invest in or trade boeing stock in the near future. I want to give you the most unbiased view i possibly can and fairly present both the bull and bear case on the screen now you're seeing boeing's weekly chart. That goes back to 2018, as you can easily see from 2020. Back until 2018, the stock was essentially range bound, even though it may seem like not much was going on.

There were a handful of noteworthy stories in october of 2018, a boeing 737 max crashed because of an issue with the flight control system. Software later that year there were tariff-related problems that hurt the company's bottom line. Then, over the next three months, the stock had an impressive 46 rally. Unfortunately, in march of 2019, a second 737 crashed because of the same software issue and it caused an immediate 16 decline.

Then, as i'm sure we're all aware, kovan 19 hit in february of 2020, which completely upended the airline industry from boeing's high in march of 2019 to its low in march of 2020, the stock dropped just under 80. The company took such a hit that in late march, it announced it would be cutting its dividends, which is obviously never a good sign due to low production. In the first two quarters of 2020, the revenue is down by 26 percent and i even read that they may have to cut 10 percent of their workforce. More recently, there has been some positive news on june 28.

It was announced that the boeing 737 max would begin its certification flight tests. This news was well received and the stock ended up jumping just over 14 percent. Unfortunately, it was announced the very next day that norwegian airlines would be cancelling an order for 97 jets. This caused half of the recent gain to be given back now that you're caught up on what's been going on with boeing.

I want to do my best to explain how the bulls see things and how the bears see things the bull camp likes to cite two main things, the first of which is their massive backlog as it currently stands, boeing has orders for over 4 000 aircrafts. This alone would take years to complete. The second point is that the us government and boeing are very intertwined when you truly realize how much defense work boeing does for the government. You quickly realize it's in the government's best interest to never let boeing go under the bear camp likes to point out that 50 percent of the company's revenue comes from the commercial airline industry, and that has been absolutely hammered lately.

Even if covet is dealt with sooner rather than later, there's a good chance that it's already caused permanent changes from the perspective of business travel. There is a chance that the sheer number of flights taken may not return to pre-covid levels. Both the bulls and the bears are anxiously awaiting the results of the re-certification flight test, as you could probably assume. If the tests are passed, the stock will climb upward, but if they are failed, the stock will most likely gap down trading binary events can be difficult, but if you feel strong one way or another, i wish you the best of luck from an investment perspective.

If i were forced to be a bull or a bear in the short term, i would be a bull because i do think the 737 max recertification test will be passed, but in the long term i would rather not invest in boeing, because i personally think there's Too much up in the air surrounding kovid and its impact on the airline industry for those of you who don't care about investing in boeing and would rather actively trade it. Let's do a quick technical analysis breakdown. There are a handful of support and resistance areas. I would highly suggest paying attention to the first is this wedge: if the stock is able to get above 207, the next area i would look for is 234 from the most recent close.

The first line in the sand would be a gain just under 15 percent, and the second line in the sand would be just under 30. From that point, i would be paying close attention to this gap fill then, if you're extremely bullish, you can target the high from early march at 297. At all four of these points, i would suggest taking some of your profits off the table. I should note that i think these first two will be the most difficult for the bulls to get over.

On the other hand, let's take a look at some of the regions of demand. As you can see, the most recent close was actually at a line of resistance from the high on march 26th right below that we have another resistance line from april 7th june 11th and june 26th. This is at 164 and would be a decline of 9. If the bears pushed the stock below 164, the next area - i would look for - would be a bounce off of this upward trend line.

If things get really bad, there is a lot of demand at 120 dollars. A bounce off of the trend line would be a drop of 24 and a bounce off the 120 dollar support would be a drop of 33. I must say i don't really think it's in the cards, but if we were to fall to the low established in march, that would be a decline of just over 50 percent. Make sure you're taking some of your profits off the table at all.

These lines of support and resistance, if you're looking to enter a trade, do it at these lines of support and resistance, because it's the best way to optimize your risk to reward as a quick reminder, i'm not a financial advisor. Please do your own research and you're in charge of your own trades, if you're interested in me doing an analysis like this on another company. Let me know in the comments below, if you enjoyed the video hit the like button and subscribe to the channel. The support is truly appreciated.

Thanks for watching and best of luck in the markets.