Best of the Week
Most Popular
1.BrExit House Prices Crash, Flat or Rally? UK Housing Market Affordability Crisis - Nadeem_Walayat
2.Stocks Bull Market Climbs Wall of Worry, Bubble? When Will it End? - Nadeem_Walayat
3.Gold Price Is Now On Its Way To All-Time Highs - Hubert_Moolman
4.Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - Harry_Dent
5.UK interest Rate PANIC CUT! As Banks Prepare to Steal Customer Deposits - Nadeem_Walayat
6.Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - Plunger
7.Central Bankers Fighting An Unprecedented Global Economic Slowdown - Gordon_T_Long
8.Putin Hacking Hillary for Trump, Russia's Manchurian Candidate? - Nadeem_Walayat
9.Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - Chris_Vermeulen
10.Gold Sector - Is it time to Back up the Truck? – Mortgage the Farm? - Peter_Degraaf
Free Silver
Last 7 days
Fundamentals for Uranium look great; is the Uranium Market ready to soar? - 29th Aug 16
3 Ways to Profit from the Stressed-Out American Consumer - 29th Aug 16
Have The Markets Become Too Big to Fail? - 29th Aug 16
Pakistan Booming House Prices Housing Market Mania Kabza Mafia Warning! - 29th Aug 16
Post Yellen = Market Confusion - 28th Aug 16
Theresa May Instructs Police, NHS Gp's, Public Sector To Stop Racial Discrimination in Service Delivery - 28th Aug 16
Ignore Yellen and Buy the Dip in Precious Metals - 27th Aug 16
SPX Downtrend Should be Underway - 27th Aug 16
Unraveling the Secular Economic Stagnation Story - 27th Aug 16
The Precious Metals Sector and the Fed. . . - 27th Aug 16
Stock Market - All Is Calm, All Is Not Right - 27th Aug 16
Gold Junior Stocks Q2 2016 Fundamentals - 26th Aug 16
Buy Gold’s August Dip? Gold’s Monthly Sweet Spot In September - 26th Aug 16
The IMF’s Internal Audit Reveals Its Incompetence and Massive Rule Breaking - 26th Aug 16
Commodities Are the Best Bargain Now—Here’s What to Buy - 26th Aug 16
Why I Left Canada and Became A Citizen of the Dominican Republic - 26th Aug 16
The GLD vs GOLD - 26th Aug 16
Can Stocks Survive Without Stimulus? - 25th Aug 16
Why Putin Might Be on His Way Out - 25th Aug 16
Bond Guru Gary Shilling - The Bond Market Rally of a Lifetime - 25th Aug 16
A Zombie Financial System, Black Swans and a Gold Share Correction - 25th Aug 16
OPEC’s Output Freeze: What Has Changed Since Doha? - 25th Aug 16
Merkel Prepares For a Deliberate Crisis While White House Plans For a Disastrous Succession - 24th Aug 16
Suspicious Reversal in Gold Price - 23rd Aug 16
If Trump Can’t Pull Off a Victory, Expect a Civil War - 23rd Aug 16
Ceding ICANN and Internet Control to Globalists - 23rd Aug 16
How to Spot an Oversold Stock Market - 23rd Aug 16
Gerald Celente Sees Worst Market Crash, New Military Conflict, Gold Spike to $2,000/oz - 23rd Aug 16
EU Olympics Medals Table Propaganda Includes BrExit Britain - 22nd Aug 16
BrExit Win's Britain Olympics Success Freedom Dividend, Economy Next - 22nd Aug 16
Stock Market Top Forming, but Slowly - 22nd Aug 16
(Really) Alternative Banking Systems - 22nd Aug 16
Vauxhall Zafira Fires - Second Recall Issued - Inspection Before Bursting into Flames? - 21st Aug 16
Will the Stock Market Bubble Pop Regardless if the FED Never Raises Rates? - 21st Aug 16
US Government Spending - 3 Big Stories Not Being Covered – Part III - 21st Aug 16
Silver Analysis - 20th Aug 16
SPX New Highs, Correction Next? - 20th Aug 16
Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble - 20th Aug 16
Gold Miners Q2 2016 Fundamentals - 19th Aug 16
Which Price Ratio Matters Most in a Fiat Ponzi? - 19th Aug 16
Big Policies, Bigger Failures - 19th Aug 16
Higher Crude Oil’s Prices and USD/CAD - 19th Aug 16
Here’s Why You Should Look for Dividend Stocks and How - 19th Aug 16
Deglobalization Already Underway — 4 Technologies That Will Speed It Up - 19th Aug 16
These 6 Charts Show Why the Average American Is Fed Up - 18th Aug 16
SPX Easing Lower - 18th Aug 16
Low / Negative Interst Rate’s Legacy - 18th Aug 16
The 45th Anniversary of The Most Destructive Event In Modern Monetary History - 18th Aug 16
USDU - An Important Perspective on the US Dollar - 17th Aug 16
SPX Completes Wave 1 Decline - 17th Aug 16
How to Quickly Spot Common Fibonacci Ratios on a Chart - 17th Aug 16
When Does a Forecast Become a Trade? - 17th Aug 16
Kondratiev Wave - The Financial Winter Is Nearing! - 17th Aug 16
Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" - 16th Aug 16
Stock Market Bears Turning Bullish At New All Time Highs - Time to Get Worried? - 15th Aug 16
Job Seekers Sacrificed to the Inflation Gods - 15th Aug 16
A Look At Commodities and Financial Markets Trading Week Ahead - 15th Aug 16
Stock Market New Top Forming? - 15th Aug 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy - 3 Secret Charts

General Electric (GE) Bullish Stock Price Outlook

Companies / Company Chart Analysis Mar 20, 2016 - 03:44 PM GMT

By: Austin_Galt

Companies

General Electric Company (GE) is a diversified technology and financial services company and is listed on the New York Stock Exchange (NYSE) with a market capitalisation of around $290billion. Price last traded at $30.92.

Let’s begin the analysis by looking at the big picture with the yearly chart.


GE YEARLY CHART



We can see a parabolic move up into the all time high which subsequently led to what appears to be an ABC corrective formation. That would imply price is now set to trade to new all time highs. I’m not so sure about that however I do favour a move back up to test the high which stands at $60.50.

The Bollinger Bands show the wave C low bounced right off the lower band and I expect price to eventually bounce back up to the upper band. Price is now currently just above the middle band but I expect some more work to be done around this middle band with price to dip back beneath it before resume higher once again. This means the yearly low is likely still in front of us.

The PSAR indicator is bullish after price busted the dots on the upside last year.

I have added Fibonacci retracement levels of the whole move higher into the all time high and price did indeed make a deep retracement by clipping the 88.6% level. Price is currently back around the 50% level which looks to be providing some resistance. I expect after one last little dip lower this resistance will give way.

The Stochastic and MACD indicators are both bullish.

Let’s move on to the monthly chart.

GE MONTHLY CHART



The RSI looks to be building strength with a pattern of higher highs and higher lows developing while the MACD indicator is bullish.

The Bollinger Bands show the recent low spiked well below the lower band before reversing straight back up in bullish style. Price now looks to be trading between the middle and upper bands however I favour a move back to below the middle band and possibly back to the lower band before the uptrend resumes with authority.

I have drawn a Fibonacci Fan from the October 2007 high to March 2009 low. This shows price finding some resistance around the 61.8% and 76.4% angles before heading directly for the 88.6% angle. Price moved bullishly through this angle before the spiking down last year with the low bang on support from this angle. Nice.

Let’s wrap things up with the weekly chart where we will try to determine a decent area to enter long positions.

GE WEEKLY CHART



Before we get to the present, let’s review the past to get an idea of how price is behaving.

We can see after the low price traded up forming a “three strikes and you’re out” topping formation. Price subsequently traded back down breaking below the previous swing low from the second strike high. Support then came in a sent price to new highs before coming back down and finding support around the previous swing low. This set up a bullish double bottom, which is denoted by the lower horizontal line, and so it was no surprise to see price move up strongly from there.

Old highs often provide support in the future and the spike low last year was right around support from the third strike high level which is denoted by the upper horizontal line. Nice.

I have added moving averages with time periods of 100 (red) and 200 (black) and these are in bullish formation with the red line above the black line. I am looking for price to come back to one of these lines where I expect support to come back in.

I have drawn a Fibonacci Fan from the low to third strike high. This shows price generally trading higher between the 61.8% and 76.4% angles and I expect a pullback to the 76.4% angle before the uptrend resumes.

The green highlighted circle denotes a gap and I am looking for price to come back to fill in this gap which stands around the $25 to $26 levels. Price may even nudge a touch lower.

The RSI is back in overbought territory while the MACD is bullish but I suspect some oscillating action is ahead.

Summing up, I believe a good buying opportunity is set to occur after a pullback over the coming weeks.

Disclosure – I have no financial interest in GE.

By Austin Galt

www.thevoodooanalyst.com 

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

Email - info@thevoodooanalyst.com 

My website is www.thevoodooanalyst.com 

© 2016 Copyright  The Voodoo Analyst - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Austin Galt Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife