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PreMarket Prep Recap: Boeing Approaches Key Technical Level, Amazon Forgoes Holiday Spirit With FedEx

December 17, 2019 2:21 pm
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PreMarket Prep Recap: Boeing Approaches Key Technical Level, Amazon Forgoes Holiday Spirit With FedEx

Tuesday's PreMarket Prep Show picked up where it left off on Monday, discussing the suspension of 737 Max production by Boeing Co (NYSE:BA) and its potential impact on the share price of the world's largest aircraft producer.

News about the relationship between FedEx Corporation (NYSE:FDX) and Amazon.com, Inc. (NASDAQ:AMZN) retailers was discussed ahead of the delivery service's second-quarter report. 

Boeing Suspends 737 Max Production 

The true impact of Boeing's announcement of the suspension of 737 Max production on the company's fundamentals are unknown and will be for quite some time. This means technical analysis is the only way to forecast the future price action in the issue. 

As discussed at length during Monday's show, Boeing has been in a wide trading range since April ($319.55 to $391), with much of the price action $20 above and below the $350 area.

The latest 737 Max news had the issue poised to test the ultimate bottom of the range. 

Aafter a lower open, sellers could only push the issue to $320.61 before staging a rally into the lower $330 handle. Today's price action is adding further significance to the $320 area moving forward.

Amazon News Pressures FedEx Ahead Of Q2 Report 

After the close Monday, Amazon announced it would end FedEx ground deliveries to seller-fulfilled Prime customers. 

The reason for the move may be the dissatisfaction the company has had with FedEx not meeting some of Amazon's on-time targets.

As expected, the development put downward pressure on FedEx ahead of its Tuesday second-quarter report. After a lower open, it found support just under Monday's low ($161.10) at $161.02 and reversed course. The stock was trading down 1.16% at $162.21 at the time of publication. 

Scheider Guests Wednesday

Nic Chahine, author of "Create Income With Options Spreads," joined midway through Tuesday's broadcast. He discussed the prospects for the rally to continue and some of his hedging tactics if the markets reverse course.

At 8:35 a.m. Wednesday, Michelle Schneider, the director of market education and research at MarketGauge, will join the show with updates on the sectors that represent her "Modern Family" portfolio. 

Related Links: 

PreMarket Prep Recap: Market At All-Time-Highs, But Not All News Is Good News

PreMarket Prep Recap: Trade War, Brexit Movers, Oracle Earnings


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