GE is always an interesting stock to follow, particularly for those investors looking for longer term buying opportunities in those blue chip stocks which have seen better days, of which this is one. The heady days of $40 per share seem a dim and distant memory, yet from small acorns….. And over the last couple of weeks we have seen GE shares stir from their slumbers at the volume point of control denoted with the yellow dashed line at $9 per share and rise dramatically for two straight weeks under good volume and candles with no wicks to either top or bottom, suggesting there is more to come from this once great leviathan. And more importantly breaching the strong resistance in the $10.50 per share which is now acting as a platform of solid support and denoted with the red dashed line.
From a technical perspective the volume on the histogram to the right of the chart is falling away as the stock rises and so is likely to help GE continue higher, with price based resistance then coming into play at $12.30 and $12.70 as denoted by the blue and red dashed levels of the accumulation and distribution indicator. These are strong regions as evidenced by the thickness of these lines and as a cluster represent a significant barrier, so expect to see GE struggle at these levels, but once cleared will open the way to a move to the dizzy heights of $14.45 per share and beyond in the longer term. Finally, note the trend monitor indicator for NinjaTrader which is now transitioning from bearish into a potentially longer term bullish phase.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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