<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tuesday, Boeing (NYSE:BA) released its fourth quarter commercial aircraft delivery results, which recorded a 14% increase over the previous year. The resulting gain of 3.8% adds to the rebound of the aircraft manufacturer, with a 17% increase in the number of its shares compared to the Christmas trough. Shares are expected to rise further after Morgan Stanley's upgrade to "overweight" today. "Data-reactid =" 11 "> Tuesday, Boeing (NYSE:BA) released its fourth quarter commercial aircraft delivery results, which recorded a 14% increase over the previous year. The resulting gain of 3.8% adds to the rebound of the aircraft manufacturer, with a 17% increase in the number of shares compared to the Christmas trough. Shares are expected to rise further after Morgan Stanley's upgrade to "overweight" today.

What do we do with the stock at this point?

From a fundamental point of view, BA's actions remain a healthy choice. Sales and profits continue to grow, while Boeing's attack on an order book that spans several years. Demand for aircraft and commercial jets remains robust as demand for air travel continues to grow. This creates significant free cash flow, allowing BA shares to return a large amount of capital to investors.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "InvestorPlace – Stock Market News, Stock Advice and Trading Advice"data-reactid =" 14 ">InvestorPlace – Stock Market News, Stock Advice and Trading Advice

That said, stock prices have not changed as well and, after rising around $ 50 a share in recent weeks, it may be time to take a break.

Trading BA Stock

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The level of $ 310 to $ 315 has been an important support in the last 12 months. Even in November, BA's shares were well below this level – opening at nearly $ 300 and falling to $ 296 – before rising above in a single session. However, even that level was not enough to support BA's action when December arrived.

After reaching its lowest level in December, Boeing's shares quickly recovered the $ 310 to $ 315, before quickly returning above their 21- and 50-day moving averages. Now what?

Stocks are not yet overbought according to the RSI statement at the top of the chart. However, that does not mean that a withdrawal is on the table. The 200-day period is currently $ 343, with downside resistance (blue line) just above. At least during the first attempt of BA Stock, I would probably wait for this area to act as a resistance.

If this were not the case, BA's shares could have a leeway of up to $ 360 or $ 370 per share.

On a withdrawal, look to see where the media materializes. When a stock goes practically right over a two-week period, it becomes difficult to find levels of support. Will he find 50% of the move? Do the 50 days – just 1.7% away – resist? How about the 21 days?

The fact is we do not know it. But in an environment like this, it's prudent to stay on the defensive when we trade, as volatility remains high. After a great race, it is reasonable to look for resistance and be patient when it comes to finding support. Let the price be the tell.

Valorisation of Boeing's stock

I like the consistency of investors with Boeing. The company is a cash flow vending machine and it is one of the most important things I look for when I look for investments. Traders can see turbulence in the Boeing chart, but investors are seeing cash flow. When the two groups can marry their theses together, this is the moment of outperformance.

Analysts expect a steady turnover, with revenue forecasts expected to grow 6.8% this year and 7% in 2019. Earnings growth is expected to reach 47% this year and 20% next year. The five-year forecast predicts annual growth of about 22%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Currently, the course of action BA is trades at about 20 times This price is not really bad, given the Boeing sales growth at medium to high numbers and above 20%. Add your big redemption and 2.6% dividendand BA's stock looks even more attractive. "Data-reactid =" 42 "> Currently, BA's share price is trading at about 20 times this year's earnings, which is really not bad considering Boeing sales at a lower 25% growth and earnings growth greater than 20%. Add your big redemption and 2.6% dividend, and the BA stock looks even more attractive.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "When the action BA has reached $ 295 l & Action, sound dividend the yield was about 3%. For unwavering investorsit turned out to be a timely purchase. I have long enjoyed BA near $ 310, but we are waiting to see what price we can get. "Data-reactid =" 43 "> When the BA stock has reached $ 295 the action, its dividend the yield was about 3%. For unwavering investorsit turned out to be a timely purchase. I have long enjoyed BA nearly $ 310, but we are waiting to see what kind of price we can get.

Although BA is affected by China, the company does not operate in a cyclical and consumer-oriented way. However, improving trade negotiations can help Boeing to go forward.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell. At the time of writing this article, Bret Kenwell did not hold any positions on the aforementioned securities."data-reactid =" 45 ">Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell. At the time of writing this article, Bret Kenwell did not hold any positions on the aforementioned securities.

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