General Electric’s (GE) 4.5% advance on positive earnings made it the only stock in the SIA S&P 100 Index Report to post a gain yesterday. The rally enabled the shares to climb up out of the Red Zone for the first time since March, into the Yellow Neutral Zone. The shares moved up 6 spots yesterday and have climbed 48 spots in the last month.
Since March, General Electric (GE) shares have been base building in the $6.00 to $8.50 range. Having spent most of the summer stuck between $6.00 and $7.00, GE has come under renewed accumulation since the start of October with a bullish trend of higher lows emerging. The recent breakout over $7.00 snapped the shares out of a four-month downtrend and signaled the start of a new upswing, which was recently confirmed by a successful retest.
Next potential resistance appears at the previous high near $8.55 where a breakout would confirm the start of a new uptrend, followed by $10.00 where a round number, measured move and old support cluster. Current support appears at the $7.00 breakout point, followed by $6.60.
Since bottoming out in May, General Electric (GE) has been building a base for recovery in the $6.00 to $8.50 range. Recently, the shares have started to climb within this zone. Earlier this month, the shares broke out over $7.20, completing a bullish Spread Triple Top pattern, which was recently confirmed by a successful retest of the breakout point as new support.
Initial upside resistance appears in the $8.55 to $8.90 area where several previous column highs/lows converge, followed by the $9.80 to $10.00 area where a downtrend line, round number and prior low cluster. Initial support appears near $7.00 where a round number, the previously mentioned retest and a 3-box reversal cluster.
With a perfect SMAX score of 10, GE is exhibiting near-term strength across the asset classes.
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