Now one of the most iconic industrial stocks of all has some potentially reversal patterns: General Electric.
GE has lost more than three-quarters of its value since the end of 2016. Its troubles have been well documented and discussed in the news and analyst reports.
However, the chart may show some long-term reversal patterns.
First, GE slightly undercut but held its March 2009 low of $5.51 in May. Holding an 11-year level like that can be important.
Second, we see the May low of $5.48 flanked on either side by higher lows of $5.90 in March and $6 on July 31. That’s a potential pattern.
Finally, GE had a outside candle on Friday, August 7, another potentially signal.
This comes at a time when the SPDR Industrial Fund is up 6.4% in the last five sessions, while the Nasdaq is up less than 0.5%.
That kind of , plus the chart patterns, could focus attention on GE on in coming sessions.
In the long run, GE is a super solid company if it wasn't for this screwup with long term health insurance this company would be riding high.
However, recent events "the pandemic" have to be changing the numbers... if it's not then why not? (I understand that it's a grim topic.)
Plus with the government picking up the tab on all things pandemic related ... should bring everything back in line. (Remember it's a health insurance issue, not a life insurance issue.)
Of course there still a string of brain dead CEOs, the multiple layers of MBAs, and the liberal HR managers to be dealt with... so bullish in the short & medium term!