Two years behind schedule, Boeing is finally ready to test-flight its hotly anticipated aircraft, the 787 Dreamliner, Tuesday.
The test-flight data marks a huge step in the development of the revolutionary airplane, whose promise of increased fuel efficiency and comfort has attracted a record number of orders for a plane still in development.
Within those 2 years -- Boeing has managed to ruffle a lot of feathers, announcing five embarrassing test-flight delays, which ultimately resulted in delays to its delivery schedule.
The Boeing chart displays the same sort of conditions: promise and problems.
The dominant feature on the chart is the up sloping triangle. This is a bullish pattern. It is created by three features:
In this case we can think of the up-sloping triangle as a ramp that allows the airplane to gather sufficient airspeed to a smooth takeoff. Takeoff velocity is achieved when the price moves above the resistance level near $53.00. The upside target for this launch is calculated using the base of the triangle. This measurement is projected upwards and gives an upside target near $71.00.
The up-sloping triangle pattern comes with two important warnings:
Despite Dreamliner's prior launch hiccups, the build up of momentum in price shown by the trend line and the up-sloping triangle pattern suggests there is a higher probability of success for Boeing.
The altitude target for this first flight is near $71.00 with the potential upside peaks near $76.00. The higher peak is calculated using the inverted trend recovery pattern
Boeing present a trading opportunity within the context of a well defined uptrend recovery.
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