The Dubai Airshow was a significant occasion for Boeing (BA), as the organization obtained a sequence of considerable orders. Reports have suggested that China may reconsider procuring Boeing's 737 MAX aircraft. Both news came positive for Boeing Stock (BA), which witnessed a significant increase.
Boeing's Dubai Order Is A Bullish Case
On Monday, Emirates Airlines, the largest operator of Boeing 777 aircraft globally, disclosed a substantial order worth $52 billion. The order consists of 95 widebody jets, of which 55 are Boeing 777-9s, 35 are 777-8 jets, and five are 787 aircraft.
With this acquisition, Emirates' order backlog for 777x aircraft is now 205. In addition to the fifteen 777 jets, the airline ordered 202 GE9X engines to propel the remaining 777X aircraft. The 777-9 might be delivered in 2025, whereas other ordered aircraft on Monday will be delivered in 2035.
Furthermore, Flydubai intended to procure 30 Boeing 787-9 Dreamliners, signifying its inaugural procurement of widebody aircraft. According to Boeing's projections, 20% of its deliveries to airlines in the Middle East will consist of widebody aircraft over the next two decades. This represents the highest regional percentage worldwide.
Chinese Government On Boeing Sales
A distinct development pertains to rumors suggesting that the Chinese government may consider resuming the ban on commercial sales of Boeing 737 Max aircraft.
President Joe Biden and Chinese President Xi Jinping are scheduled to meet on Wednesday at the Asia-Pacific Economic Cooperation (APEC) conference in San Francisco. It has been reported that China is contemplating a commitment to purchase 737 aircraft, although further discussions are ongoing.
Nevertheless, it is improbable that President Xi will formally declare the order for the first time since 2018.
Boeing Stock (BA) Technical Analysis
In the daily chart of Boeing Stock (BA), the recent price shows a bullish trend reversal followed by an inverse Head and Shoulders Breakout. Moreover, the upward pressure is solid from the fundamental background, which could work as an additional bullish signal for BA stock.
Currently, the bullish neckline breakout came with a stable price above the dynamic 20-day EMA, while the current RSI is at the 70.00 level.
A minor downside correction towards the dynamic 20 EMA is possible based on the daily outlook. However, the upside pressure is valid as long as the price trades above the 182.52 support level. In that case, the primary target would be the 229.11 support level.
On the other hand, a sharp downside pressure below the 182.00 area could alter the current scenario and lower the price in the coming days.