For years, Boeing Co. (NYSE:BA) investors have had to watch one of the company’s biggest growth opportunities sit largely out of reach. Now, that may be changing.
The Arlington, Virginia-based company is expected to be a major beneficiary of a historic aircraft agreement between the U.S. and China that begins with roughly 200 planes and could eventually expand to as many as 750 aircraft. The deal represents Boeing’s first major Chinese sales opportunity in nearly a decade and signals a significant shift for a company that has spent years navigating geopolitical tensions, regulatory scrutiny and production challenges.
The timing is particularly notable. Just as Boeing’s China prospects improve, regulators are allowing higher production rates and the stock is approaching one of Wall Street’s most closely watched bullish technical signals: a Golden Cross.
Chart created using Benzinga Pro
Trump Reopens A Critical Market
The China agreement is about more than just aircraft sales.
Boeing CEO Kelly Ortberg has credited President Donald Trump with helping reopen the Chinese market for Boeing jets, a development that could have far-reaching implications for the company’s long-term growth prospects.
Like Boeing, GE Aerospace (NYSE:GE) is also among a beneficiary of the agreement. Boeing could supply hundreds of aircraft, while GE stands to benefit from engine sales and decades of recurring maintenance revenue.
For investors, the significance goes beyond the initial order. China remains one of the world’s most important aviation markets, and Boeing’s inability to meaningfully participate there has long been viewed as a major overhang on the stock. The latest developments suggest that overhang may finally be starting to lift.
The Regulatory Picture Is Improving
The China opportunity would matter far less if Boeing couldn’t build enough planes to meet demand.
Fortunately for bulls, the operational backdrop is improving as well.
The FAA recently approved an increase in 737 MAX production from 42 aircraft per month to 47 aircraft per month. Boeing expects certification of the 737 MAX 7 later this summer.
Those milestones are important because Boeing’s challenge has never been demand. Airlines already want the planes. The real question has been whether Boeing could rebuild trust with regulators and increase production without running into further quality-control issues.
Recent developments suggest progress on both fronts.
The Chart Is Starting To Confirm The Story
The stock’s technical setup suggests investors may already be taking notice. Boeing stock recently broke above a key resistance area near $210 and continue to trade above both their 50-day and 200-day moving averages.
More importantly, those two indicators are rapidly converging, putting Boeing on the verge of a golden cross, a bullish pattern that occurs when the shorter-term trend overtakes the longer-term trend.
Momentum indicators are also supportive. The Relative Strength Index remains below overbought territory, while the stock has established a pattern of higher highs and higher lows in recent months, a classic sign of a strengthening uptrend.
No single catalyst guarantees a turnaround. But Boeing’s story is no longer just about fixing past mistakes.
With China reopening, regulators allowing higher output and the chart turning increasingly bullish, investors are beginning to ask a different question: after years spent battling headwinds, is Boeing finally positioned to benefit from them?
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