Laboured would best describe progress for GE as the once stellar stock continues to remain rangebound, but for long term investors, patience is the watchword for those looking for a buy and hold and a possible return to the heady heights of $36 per share and beyond.
The technical picture for this stock is dominated by key levels, and none more so than the very well developed resistance at $12.50 per share, and denoted with the blue dashed line of the accumulation and distribution indicator. The thicker the line the deeper the resistance and confirms a level which is likely to become significant to any longer term progress higher for the stock. Meantime GE continues to trade around the volume point of control which is neatly balanced at $10 per share and shown with the yellow dashed line. This is the fulcrum for this stock and defines the heaviest concentration of transacted volume on the chart. Ahead, between $11 and $12 per share we have light volume which should make progress here more ‘rapid’ before approaching the $12.50 resistance area. Note also the trend monitor indicator has recently reverted to blue, signalling a pick up in the bullish tone for GE. So once any break away from the VPOC begins, provided it is associated with good volume, we should see a firm move from the current price up towards $12.0. If this level is taken out we will then have an excellent platform of support in place for a sustained move higher and a return to happier times for those GE investors prepared to be patient as the accumulation phase continues.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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