GE has been in a downtrend path for all the 2017 and 2018, most of the time even under the moving average 50 days (blue line), and the price just once tested the 100 days trend line (orange moving average).
Today, the stock is closing almost with a +8%, after the company announced his plans to spin off its health-care business and sell its participation in the oil-services company Baker Hughes.
Maybe is too early to say the downtrend is finished, and the company still faces some risks in the short term, as some expected downgrades in his credit rating, and his recent reality after it was removed from the Dow Jones.
From the technical analysis view, there are some key elements: A) possible double bottom formation, around the $12.75 area, and B) a possible MACD bullish cross in the daily graph (left).
Before to go long, I will wait for some confirmation signals for the next days, such as: 1) keep price action over today GAP ($13.5); 2) price action over the moving average 8 days (green line); 3) golden cross between 20 and 50 days moving average; and lastly, but not least important 4) stay above the long-term trend, the 200 days moving average!
Today, the stock is closing almost with a +8%, after the company announced his plans to spin off its health-care business and sell its participation in the oil-services company Baker Hughes.
Maybe is too early to say the downtrend is finished, and the company still faces some risks in the short term, as some expected downgrades in his credit rating, and his recent reality after it was removed from the Dow Jones.
From the technical analysis view, there are some key elements: A) possible double bottom formation, around the $12.75 area, and B) a possible MACD bullish cross in the daily graph (left).
Before to go long, I will wait for some confirmation signals for the next days, such as: 1) keep price action over today GAP ($13.5); 2) price action over the moving average 8 days (green line); 3) golden cross between 20 and 50 days moving average; and lastly, but not least important 4) stay above the long-term trend, the 200 days moving average!
Comment:
This idea is still active. As long as the price action remains over $12.75 area. A few days ago it losses the GAP, but now it's trading again over it, but facing some resistance in the 100 days moving average.
Trade closed: stop reached