The technical picture of the General Electric Company stock (NYSE: GE) on our 4-hour chart suggests that there is a good chance of seeing the share price moving a bit further south. GE is currently trading below two of its short-term tentative trendlines, an upside one drawn from the low of October 27th, and a downside one taken from the high of January 12th. Tomorrow, the company is set to deliver its 2020 Q4 earnings results, which are not expected to be satisfying. Given the negative forecast and the current technical picture of the stock, for now, we will stay somewhat negative in relation to the near-term outlook.
A drop below last week’s low, at 10.94, could open the door for a move to the 10.41 hurdle, marked by the current lowest point of January. GE may get a temporary hold-up around there, or even correct slightly higher. That said, if the stock continues to trade below both of the previously-discussed trendlines, another slide might be possible. If this time the price is able to fall below the 10.41 hurdle, the next potential target could be at 9.96, marked by the low of November 30th.
The RSI and the MACD are pointing slightly lower. In addition to that, the RSI is currently below 50 and the MACD remains below zero and its trigger line. The two oscillators are indicating rising downside speed, which comes inline with the above-discussed scenario.
Alternatively, if the stock suddenly moves higher and rises above all the previously mentioned trendlines, that might attract more buyers into the game. GE may then travel to the 11.91 barrier, marked by the current highest point of January. The price could get a slight hold-up around there, but if the buying-interest is still strong, the stock may rise further and aim for the 12.22 level. That level is marked by the low of February 21st, 2020.
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