Airbus share price has pulled back in the past few days after hitting the key resistance level at €173.65 on June 4. It was trading at €163.9 on Wednesday, its lowest point since June 3, and 32% above the lowest point this year.
Airbus business is doing well
Airbus, the giant aircraft manufacturing company, is doing well as the trade war between countries continues and as demand for its planes jump.
The trade war between the US and China that started during Trump’s first term has pushed China to largely abandon Boeing for Airbus, a notable thing since China is one of the biggest markets for the industry.
China is now considering making one of the biggest orders in the aviation industry. As we have reported, the country will make a big order of between 300 and 500 planes in July when European officials travel to China to celebrate the trade relations.
China’s goal with that order is to show the US how much it is losing because of its trade war. This is notable because Boeing was one of the top suppliers of jets to China in the past.
Airbus could also win a big order from Ryanair, the biggest airline company Europe. The company has warned that any large-scale tariffs on jets will push it to cancel Boeing orders worth over $33 billion.
The most recent results showed that Airbus’ business was having more orders as the aviation industry recovers. Its net order intake jumped by 20% to 204.
Similarly, its helicopter order intake jumped by 58% to 100, while the defence and space division jumped by 30% to 2,592. The defence segment is benefiting from the ongoing increase in spending, especially in Europe.
Read more: Boeing stock price many catalysts points to a surge to $267
Airbus revenue and backlog growth
This growth has pushed its order backlog to 8,726 commercial aircraft, much higher than Boeing’s 5,600.
Airbus had €13.5 billion in revenues, up from €12.8 billion in the same period last year. Its commercial jet division revenue represented about 69% of its revenue during the quarter.
The commercial division delivered 136 planes, down by 4.2% from 142 in the same period last year. This decline was mostly because of the supply chain issues that affected its business. It hopes to deliver 820 jets this year.
Airbus Helicopters delivered 51 aircraft, a 2% increase, while its defence and space orders jumped by 30%.
While order intake has stalled of late, its strong brand positioning and geographical positioning will be an advantage for the company. Unlike Boeing which manufactures in the US, Airbus has operations in Europe and the US, making it less affected by tariffs.
The company will also benefit as many countries start to turn against the United States because of its tariffs.
Airbus share price technical analysis
The daily chart shows that the Airbus stock price bottomed at €123.74 on April 7 and then bounced back to a high of €173.65. Its highest point this month was a notable level because it coincided with the previous peak in March.
Airbus’ stock price has formed a double-top pattern whose upper side is at €173.64 and the neckline is at €123.75. A double-top is one of the most bearish patterns in technical analysis.
The MACD and the Relative Strength Index (RSI) have all pointed downwards. Therefore, the stock will likely remain under pressure as long as it is below the double-top point at €173.64. A move above that level will signal more gains, potentially to €200.
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