The last time we looked at General Electric (GE) was in the January 6th edition of the Daily Stock Report when the shares had just entered the Favored Zone a few days prior in the SIA S&P 100 Index report at a price $70.20. Today we see the shares have continued to remain in the Favored Zone with a closing price of $94.30 which now translates to a 34.3% price appreciation since the beginning of January. Currently the shares occupy the #2 spot in the S&P 100 Index, up 7 spots in the last quarter. This magnifies the importance of always looking for names in the Favored Zone for better risk/reward opportunities. In looking at the Candlestick chart, we see the shares formed a classic double bottom pattern in July and October of last year and since then the shares entered a renewed accumulation phase which has continued on up until today. After a brief and shallow pullback late in the year the shares have regained traction breaking above a significant resistance level at approximately the $90.00 area. The next area of resistance looks to be at the $100 psychological level. Support can be found at $90 which was the previous level of resistance.
In looking at the 2% Scale on the Point and Figure chart we see the shares have been very strong since the beginning of the year with a rising column of X’s totalling 23 X’s without even a 3 box reversal.
Support can be found at its 3 Box Reversal of $88.70 and, below that, $75.71. To the upside, resistance can be found at $99.89 and, above that, the $114.75 area. With an SMAX score of 10 out of 10, GE is exhibiting near term strength against all asset classes.
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