Four months ago, an Ethiopian Airlines crashed killing 149 passengers and eight crew members on board shortly after takeoff. The incident was the second deadly crash of the new Boeing planes in less than five months. A Lion Air Boeing 737 MAX 8 plunged into the Java Sea shortly after taking off from Jakarta in October, killing all 189 people on board.
Immediately after the Ethiopian Airline crash, Ethiopia, China and Indonesia, Caribbean carrier Cayman Airways, Comair in South Africa and Royal Air Maroc in Morocco temporarily grounded their Boeing MAX 8s as a precautionary measure. This was shortly followed by all 737MAX 8 planes around the world being grounded.
The chart suggested price would fall to the daily demand at $360.
The culprit, Maneuvering Characteristics Augmentation System (MCAS), suspected of reacting to errant sensor data, the solution, a software update. Today, all 737MAX 8 planes around the world remain grounded.
After Boeing (BA) missed second-quarter earnings expectations by wide margin Wednesday, CEO Dennis Muilenburg stood by expectations that the troubled 737 Max would return to service early in the fourth quarter.
“If any of the timeline assumptions change significantly from a start-of-the-fourth-quarter return to service, then we’ll have to evaluate alternatives,” Muilenburg said. “And those alternatives could include different production rates, they could include a temporary shutdown of the line — not something we want to do, but an alternative that we have to prepare for, I think, is a smart part of our thorough and disciplined process here to make sure we’re covering all scenarios.”
Price did bounce off the daily demand at $360.
but because the woes continue the zone was breached and now the chart suggests, price could fall down to the support level at $300.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.