In today’s edition of the Daily Stock Report, we are going to take a look at General Electric Co (GE) which we last spoke about on April 14th, 2023, when the price of the shares were at $94.30. GE had first entered the Favored Zone of the SIA S&P 100 Index Report way back on January 6th at a price of $70.20. Today, the shares sit at $106.69. This represents a 52% price increase since entering the Favored Zone and a 13% increase since our last commentary on April 14th, 2023. Currently the shares sit in the 3rd spot in the S&P 100 Index, up 3 spots in the last quarter.
In looking at the Candlestick chart, we see the shares forming a nice double bottom pattern in July and October of last year and then the accumulation phase began which lasted right up until last month. In the past month, we see the shares have started to “peter out” somewhat with an early sign a consolidation phase may be beginning as the shares are right at its recent low in the $107.00 area. We may see support at the $100 psychological level. If that fails to hold, the next level of support can be found at $90.00. To the upside, resistance can be found at its recent high of $117.00.
In the attached Point and Figure Chart at a 2% scale, we see a very strong accumulation phase which started in January of this year with a rising column of X’s up until August without even a 3-box reversal. Now we see another sign the shares may be entering a consolidation phase as the shares failed to hold its 3-box reversal support area of $107.99. The next area of support can be found at its 50% retracement level of $101.76 and, below that, the $88.59 area.
To the upside, resistance can be found at its recent high and 3 box reversal area of $116.89 to $119.22. It will be interesting to see going forward if this early-stage consolidation phase can resolve itself to the upside or if we trend lower into distribution phase. With an SMAX score of 8 out of 10, GE is showing new-term strength against most asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
