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As Boeing tracks for best month since 1982, Oppenheimer says watch this key level

Boeing shares: Watch this one key level

Boeing is on track for its best month since 1982.

The company's shares are up 26% in June, cutting back steep losses for the year. The stock was lower on Tuesday after Norwegian Air canceled orders for 97 Boeing jets a day earlier. This follows a spike on Monday after the company began tests of its 737 Max in the hopes of recertifying the model since its grounding in March 2019.

"We see Boeing as one of the recovery stocks that were hard hit through the Q1 Covid collapse. Now, we think it is in the process of basing but it should continue to ebb and flow over the coming month. That basing has more work to do," Ari Wald, head of technical analysis at Oppenheimer, told CNBC's "Trading Nation" on Monday.

Wald does not see the stock as a buy given it remains below its 200-day moving average. However, he does see one key level that short-term investors can use to their advantage.

"Traders can trade off of support at $166. That's where the stock's June breakout lines up with the 50-day average. Looks like there could be some additional countertrend relief as long as the stock is above $166. Of course, below it and we're talking about some damage to that base and the possibility of some follow-on selling," said Wald.

Boeing would need to drop nearly 10% to reach $166. 

Quint Tatro, president of Joule Financial, warned that the shares could still come under pressure here. 

"The stock seems to be having what we would view really as a short covering rally here. From a fundamental perspective, I mean, this is just a total crapshoot. This is going to be a company that's going to be event-news driven for a very, very long time. There's no incentive any longer to be a buyer here," Tatro said during the same segment. 

Boeing's internal issues combined with the economic downturn tied to the coronavirus could keep the company on the back foot, he added. 

"They're going to have to really start to see a pickup in aviation and flight in the economy going forward just to really start to make any sort of financial progress so it's a value trap in our book. We would stay away from it here," Tatro said.