Off The Charts: GE threatening to break colossal resistance
We don’t cover individual stocks too often. But given its status as perhaps a “bell-weather” stock, one that we have mentioned over the past few years is General Electric. The impetus for the previous posts has been to point out the substantial resistance sitting near the 26.70-28.25 area. Indeed, since first testing that level in early 2014, the stock has been unable to make any headway. The main sources of resistance that we identified are the following:
- 38.2% Fibonacci Retracement of 2000-2009 Decline ~26.70
- 61.8% Fibonacci Retracement of 2007-2009 Decline ~28.25
- High-volume breakdown level in 2008 ~28.20
- January 2014′s high at 28.09
With today’s news regarding GE Capital and its massive stock buyback, GE has gapped back up into this major resistance area again. And with a late-day push, the stock is attempting to break above that level. If successful, it could be a major long-term positive development for GE’s stock. And if the bell-weather notion is valid, it could also provide a boost for the industrial sector and the overall market.
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The commentary included in this blog is provided for informational purposes only. It does not constitute a recommendation to invest in any specific investment product or service. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
