There is a risk of a further decline if negative fundamentals will keep adding up.
Psychological level still plays role of a support.
Breaking below PL might trigger short-term panic sale.
In that condition, the next demand point for a assumed reversal would be anywhere price touches 1.618 fib channel.
Accumulating more would be a solution because GE is already on the lowest levels since 2009. As it declines more people are willing to buy at this cheap price range.
RSI and MACD indicators are confirming the oversold condition of the stock.
Comment
⋅
I'm not necessarily saying that the stock will drop, I'm implying that if it really drops to those levels, that would be the lowest point in 25 years! So having invested at such price or "trading the pullback" would be just fine by me.
Anyone loaded up? Im ready for some news this weekend.
allegorycave
⋅
What needs to happen for you to lose the bought stocks? Does the company needs to bankrupt fully?
fract
⋅
@allegorycave, The bankruptcy of GE is a premature talk, nevertheless stock indeed shows weak performance.
Let’s just watch the impact of 2nd wave of covid19 for now. It’ll get clearer with each new candle of trades.
Anyways, the more it drops, the greater the percentage growth of pullback becomes. :)
allegorycave
⋅
@fract, I don't mean GE can go bakrupt, worst case scenario would be a bail out. It's impossible the gov would let such a giant to tumble on a mere cough virus. What I mean was, even if price starts dropping down to dollar or two, this would mean you were early in the long. Now what I'm asking is, if you hold through, eventually athea stock will bounce and you will be in profit. Is there a scenario where you can completely lose you investment? Sorry I'm new to stocks but I'm eager to hear your opinion on my question.
fract
⋅
@allegorycave, Of course there is. But the odds for losing completely on that supposed investment is not that high.
I have buy limits set up in certain levels instead.
allegorycave
⋅
@fract, But that's my question, what needs to happen for you to lose your investment completely? Or maybe the worst case scenario for you is to hold a losing stock for some time? If I'm correct, you can't possibly lose the stock in any way, right?