3/1/2017 – General Electric (GE) Stock Chart Analysis
The company General Electric (GE) has been around a very long time. You can visit their official webpage here. The company of today looks a lot different than the company of "yester-year" that I remember as a child.
I actually think their commercials are hysterical. Especially the one where the son tells his dad he is going to work for GE. His dad places a big ole' sledgehammer on the end table and tells him it was his grandfathers. The son tells his dad he is going to be a programmer and won't need the hammer. The dad calls out the son and asks "You can't pick up the hammer son, can you?"....yes a few things are lost in translation but if you have seen the commercial, you will know which one I am referring to.
Well, this article is not about the quality of the commercials that GE makes, its about the price action for its stock. So let's start reviewing some charts!
General Electric (GE) - 20 Year Chart
Since I am not familiar with the charts and price activity for General Electric, I am going to start big and look at this 20 year candlestick chart. Sometimes these charts provide clues about long-term support or resistance areas. It could even provide some clues as to the overall Elliott wave pattern the share price may be in. Let's see if GE's charts provide any longer-term clues.
This 20 year chart has 2 Fibonacci Retracement Tools that I've placed on it. One was on the entire downtrend (the black one) and the other was just on the last leg of the downtrend (the blue one). Looking at the entire downtrend that started from a high of $60.50, GE has already reached its minimum 38.2% Retracement. Interestingly, it reached the 50% Retracement Line before consolidating and pulling to the bottom of a Trading Channel I've illustrated.
The price action has been very well contained by the Fibonacci Retracement Tools. GE's share price spent almost 2 years in-between the blue 50% and 61.8% Retracement Lines. GE's share price then moved up to the next quadrant. The next quadrant seems to be defined as the blue 61.8% Retracement Line and the black 50% Retracement Line. GE's share price has spent over a year and a half in this quadrant.
Typically, making a scale-in purchase of shares at the bottom of a Trading Channel is a good area. That's where GE's share price currently resides - right near the bottom of its Trading Channel.
The only thing that is a little concerning about its share price is the ….
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