Don't Ignore This Chart!

General Electric Finds Support, but Remains Short of a Breakout

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It has been a rough year for General Electric (GE) because the stock is down around 4% and underperforming the S&P 500 SPDR (SPY), which is up around 6% this year. Despite relative weakness, momentum is improving as MACD edges into positive territory and the stock is bouncing off support. Notice that broken resistance and the 61.8% retracement zone turned into support as the stock bounced in early February. GE tested this level again in late March and bounced over the last two weeks. This is encouraging price action, but the stock remains below its first resistance hurdle. Look for a break above the red resistance zone (30.25-30.50) to show a significant increase in buying pressure. Such a move would turn this chart bullish and argue for further strength to the low 30s.

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Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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