3 Big Stock Charts for Monday: Boeing, Procter & Gamble, and Caterpillar

Stock Market

The stock market can be a real mystery sometimes. Friday’s price action was a perfect example of this as overall market sentiment was bullish despite the dismal jobs data.

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Mostly because of the economic damage caused by the spread of the novel coronavirus, April of 2020 will be remembered as America’s fastest monthly drop in employment. Specifically, non-farm payrolls indicate that 20.5 million U.S. jobs were lost in April. Moreover, the unemployment rate increased to 14.7%

Yet, many stocks posted gains because economists expected 21.5 million lost jobs and an unemployment rate of 16%. Thus, Friday’s price action could be considered a relief rally.

Consequently, a number of very well-known companies’ stocks posted gains to end a mostly bullish week. Monday’s big stock charts will feature three of those stocks with a focus on their outlook from a technical perspective.

Boeing (BA)

BA stock

Source: Provided by Finviz

The spread of the coronavirus has taken a toll on the share price of Boeing (NYSE:BA) stock in 2020. Even before that issue, Boeing was facing pressure from regulators concerning their 737 MAX line of planes. Nonetheless, shareholders of BA stock might have reasons to believe that a comeback is in the cards. Will the first of our big stock charts lend support to this?

  • A nearly 4% gain for BA stock is certainly welcomed by shareholders. In the bigger scheme of things, though, it’s just a drop in the bucket. The bulls can’t afford another lower high and lower low in the price action.
  • BA stock is struggling with the 20-day moving average. Plus, it still has a long way to go before the bulls can reclaim the 50- and 200-day moving averages.
  • Moreover, the daily trading volume has been petering out. Therefore, the upward price movements on Thursday and Friday appear to have less conviction behind them.

Procter & Gamble (PG)

PG stock

Source: Provided by Finviz

Normally considered a safe and steady investment, Procter & Gamble (NYSE:PG) has been unusually volatile this year. Once again, the spread of the coronavirus is the root cause of the stock’s wobbly price action.

However, PG stock investors seemed to be calm, cool, and collected on Friday. Is this a sign of more upside to come?

  • The green candlestick printed on Friday must have come as a relief to embattled PG stockholders. They need to reverse the downtrend that has been in effect since the middle of April.
  • We can see that PG stock just closed above the 50-day moving average. The bulls should watch carefully to see if the stock price pierces above the other major moving averages on the chart.
  • There’s strong resistance at the $125 level. Cautious investors might consider taking profits at that price point.

Caterpillar (CAT)

CAT stock

Source: Provided by Finviz

Income-focused investors respect Caterpillar (NYSE:CAT) as a Dow Jones component and a dividend king. Unfortunately, the construction equipment industry has struggled due to the financial impact of the Covid-19 outbreak.

That being said, CAT stockholders might see a light at the end of the tunnel as some market participants hope that the worst is behind us. Let’s take a closer look at the last of today’s big stock charts for clues that a turnaround is indeed in progress.

  • It’s encouraging for the bulls to see the price action of CAT stock curling upwards on Friday. However, there are still lower highs and lower lows, so no one can afford to be complacent now.
  • There’s a major battle going on at the 20- and 50-day moving averages. It will be interesting to see whether the bulls or the bears prevail over the next few trading sessions.
  • A symmetrical triangle chart pattern has been forming since March. The CAT stock price remains below the triangle but could re-enter it at some point in the near future.

As of this writing, David Moadel did not hold a position in any of the aforementioned securities.

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