First, in the 1h chart, we see a short-term bear trend, as we have lower highs/lows, and a purple trendline connecting the previous tops. But GE recently hit the orange line at $ 12.79, which is a nice .
If GE is about to reverse this short-term trend, now is the best time for it. The stock must either break the purple trendline or make a structure. Now, let’s see the daily chart:
We may have a short-term bear trend in the 1h chart, but the trend is slightly in the . Although we don’t have higher highs, we do have higher lows, and GE just hit the purple trendline today, which is a nice as well, and it is bouncing back up.
The orange line in the 1h chart and the purple trendline in the make this price level a Dual-Support zone in different time frames, something worth noticing.
Today’s reaction is quite good, but GE still must defeat the green line at $ 13.69 in order to fly again, as this point worked as a resistance twice in the past, and it seems to be an important psychological point. While this is possible, keep in mind that we are in a delicate situation in the long-term perspective:
We recently hit the green line at $ 13.26 (pre-covid high), and now the stock is dancing around this price level. It can’t drop, because it is still a strong stock, but it is not that strong to the point of breaking this resistance for good.
All that is left is an annoying congestion, until the 21 catches up with the price. We have something that resembles a Pennant pattern, and if that’s the case, fantastic.
The low volume is another evidence that this is just a harmless correction in larger time frames, but although this is a good sign, it'll probably take a while before GE does something interesting again.
We must be patient here, but let’s keep monitoring GE closely. And if you managed to read this far, remember to follow me to keep in touch with my daily studies, and please, support this idea if you liked it!
Thank you very much!