To The Moon

As a trader who closely monitors $Boeing(BA)$, I'm increasingly concerned about the recent developments with their largest union. Here's why this could be a major headwind for the company.

Boeing's union, representing over 32,000 machinists in the Seattle area, overwhelmingly voted to authorize a strike if contract negotiations fail. Their demands are significant: a 40% pay raise and reinstatement of the company pension program eliminated in 2014.

While compensation is a key issue, the union also wants guarantees that Boeing's next new airplane will be built in Washington state. This highlights job security concerns among workers, which could further strain the relationship with management.

BA Daily Chart

From a technical analysis standpoint, the stock is already displaying concerning signs. Previously, I mentioned a potential downside towards $165-174 if the price dipped below $182 and failed to hold within the ascending channel. Well, that's exactly what happened - the price retested the channel's bottom and barely closed inside it. This is a bearish signal for me.

My Trading Strategy

Based on these developments, I'm leaning bearish on Boeing as long as the price remains below $182. My target price range sits around $165-174.

Disclaimer: This is just my analysis, and the market is unpredictable. The labor dispute and its resolution will significantly impact Boeing's future. Stay informed about the negotiations and keep an eye on the technical indicators before making any trading decisions.