GE looks to be bottoming. Long opportunity presenting its self. That being said, bottoming is a process. There will be throwbacks and possibly lower lows, but we are likely at or near the bottom. If there is a major recession or accounting tricks all bets are off. Below is my analysis on why this is a long opportunity this coming week and possibly over the next few years.
Hourly
Early this week I expect GE to return to close the earnings gap. I expect it will bounce off of $14. Once It does, a significant up move could be under way. MACD leaning down. Stoch RSI leaning down. The OBV does look interesting. It has broken a downtrend and recently formed a series of higher highs and lower lows.
Daily
On the daily I see the stock moving to close some of the previous gaps and will likely bang against some overhead resistance points. I used the Fibs and congestion areas to form targets. I am not a Fibs guy, but they are a useful tool. The blue lines are the targets.
A quick look at the indicators suggest higher prices. The MACD is leaning up. So is the Stoch RSI. If you expand the OBV you can see that the trend downward has stalled out. I would suggest you follow OBV closely to discern if the stock rebound is sustainable.
Weekly
The weekly looks promising, but needs some work. First look at price. The only time price was lower was 2009. Lets say that again...2009. Remember then, when we thought market economy would collapse on itself. GE also had positive earnings back then too (even if declining). We could see a repeat of the great recession, but companies like GE have in their institutional memory the lessons learned from financial crisis. I doubt they will repeat many of the same mistakes sand would be quick to position their company for success. So that is number one. We are really oversold and this is not 2009.
Second, the indicators. Starting from the bottom indicator. The OBV needs to do some serious work. It is still in decline. Next the Stoch RSI. It is on the way up. Finally the MACD. Look very closely. Not only has it leveled out. It has crossed upward from an extremely oversold level. A simple MACD reversion to 0 will likely bring the stock to within proximity of the $17.56 level.
Monthly
Last up, the monthly chart. Here again you can see the dramatic price decline. The only other previous low was 2009. Even if 2009 repeats. This is not 2009!
The indicators are going to take some time to recover. The MACD will likely not cross upward until at least Christmas time. The Stoch RSI, however, may have already crossed up and could confirm within the next month. OBV just sucks. It will take a couple of months just to break the downtrend. Overall, if the shorter time frame chart shape up, expect the monthly to see improvement.