Boeing Company (BA) found sellers after Elliott Wave zig zag pattern

In this technical blog we’re going to take a quick look at the Elliott Wave charts of BA , Boeing Stock.  As our members know, BA has recently given us correction against the 241.58 peak. Recovery formed Elliott Wave Wave Zig Zag Pattern. In the further text we are going to explain the Elliott Wave Pattern and the Forecast.

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A  or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and  ideal retracements.

BA H1 Elliott Wave analysis 08.30.2023

BA is showing 5 waves down from the July peak ( 243.26). That indicates the stock ended only first leg of the larger pull back and we should ideally see further weakness once (B) blue recovery completes. Wave (B) correction looks to be unfolding as Elliott Wave Zig Zag pattern. First leg A of (B) is impulsive, sharp rally , while C leg seems to be unfolding as Ending Diagonal pattern. Approximate area where (B) can end is equal legs A-B red that comes at 229.95-232.51. We don’t recommend buying the stock and expect to see decline in  a 3 waves pull back at least or toward new lows ideally.

BA H1 Elliott Wave analysis 08.30.2023

The stock made decline from the equal legs area 229.95-232.51 as expected. As far as the price stays below 231.2 high, we can count correction completed. However , we would like to see further separation lower and break of 08/25 low to confirm next leg down is in progress. Decline from the 231.2 peak looks like 5 waves which means we should ideally get further decline after 3 waves bounce ends.