Boeing Breaks Out, Gains $1.70

Shares of Boeing traded higher this morning reaching as high as 45.73, up 1.70 from yesterday's close. The spurt was no unexpected as Boeing's chart pattern was making an obvious reverse head and shoulder's formation that could not be ignored. Also, with an unfilled trading gap between 45 and 46, odds were strong that the stock would rally at least to fill the gap. Using common technical analysis, a projection to the 48 level can be expect. The September 45 calls, that had been trading as low as $1 a couple of days ago has more than doubled to 2.45.

News that the US Government may provide sophisticated technology as part of a multi-billion dollar fighter plane contract that Boeing is seeking with the Brazilian government may have helped push the stock higher. In addition to Boeing's F-18 E/F Super Horne offering, Brazil is also considering Dassuault Aviation's Rafale-C and Saab's Grippen NG fighers.

Brazil is expected to make its decision by the end of August.