Boeing Stock Sells Off as Support Collapses and Job Cuts Threaten – Boeing (NYSE:BA)

The Boeing company B.A announced plans to cut staff after the stock fell below a key support level. As traders and investors who had created support with their buy orders have either completed their trades or pulled out, Boeing stock is showing signs of further downward pressure.

When a stock is trending downward, it suggests that there is not enough demand to absorb all the sell orders. However, once a support level is reached, the momentum shifts as increased demand can stabilize the price. In the case of Boeing, the break below support suggests that sellers may need to push the price lower to attract renewed interest from buyers.

Sometimes when a stock reaches support, it reverses and a rally occurs. Boeing shares recently rebounded from the $163 support level.

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This happens when some traders and investors who want to buy stocks fear that other buyers will offer higher prices. They know that sellers will go to whoever pays the most.

They don't want to miss out on the trade and therefore increase the prices they are willing to pay. Other concerned buyers see this and do the same. This leads to a bidding war that can drive shares higher.

But sometimes when the stock falls to the support line, it breaks and the stock falls. This recently happened at Boeing.

When support breaks, it means that the traders and investors who created it with their buy orders have exited or aborted the course. A large part of the demand has left the market. At this point, there is more supply or shares to sell than demand or shares to buy.

As a result, sellers have to lower the price to attract buyers' attention. Unfortunately for Boeing shareholders, that's exactly what happened last month.

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