After its reversal to the upside in the end of December, the General Electric stock (NYSE: GE) moved higher and almost doubled its value by the end of February. Of course, those were not new levels, as they were previously tested in the end of October. But after hitting the highest point of this year on February 25th, which is at 11.74, the stock moved back down and ended up oscillating around the 10.00-dollar mark. From around mid-June, GE started moving in a narrower range, trading between the 10.00 and 10.70 levels. But in order to slightly support the upside idea, on Monday, the share price rebounded from a medium-term tentative upside support line taken from the low of December 26th. Yesterday, GE tested the upper side of that range and got held below it once again. Taking into consideration everything mentioned above, we will take a cautiously-bullish approach for now, but we will wait for a confirmation break above the upper bound of the range, before examining higher levels.
A strong push above the 10.70 barrier would confirm a forthcoming higher high and could lead the stock to the 10.92 hurdle, which is the high of February 27th. If that area is just seen as a temporary obstacle, another price-rise may lead GE to the 11.46 zone, marked by the opening level of February 25th. The stock might get a hold up around there, or even correct back down a bit. But if the share price stays above the 10.70 mark, it may accelerate once again, driving all the way back to the 11.46 hurdle, or even to the 11.74 barrier, which is the highest point of this year, so far.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-discussed scenario. The RSI is well above 50 and points slightly to the upside. The MACD is now back above zero, sits comfortably above its trigger line and points to the upside.
On the other hand, if we see the price sliding back down, breaking the aforementioned upside line and dropping below the lower side of the range, at the psychological 10.00 zone, this might force some investors to liquidate their current positions. Such a move may take the price to the 9.53 obstacle, a break of which could send GE to the lowest point of May, at 9.15.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.