Technical Condition of General Electric Improves Slowly

 | Jun 08, 2018 | 3:39 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


The technical condition of General Electric (GE) has continued to improve since our mid-April update, when I looked at things this way -- "We don't have a chart of the short interest on GE but it has been reduced four million shares from 155 million to 151 million shares, recently. As a stock declines there is less reason to be short. Add in a bullish divergence from momentum and reduced volume and a point and figure target and we have enough ingredients to have a low." In the past few weeks the charts and indicators for GE have improved. Let's take a look.

In this updated daily bar chart of GE, below, we can see that prices have been able to rally above the now flat 50-day average line. This is an improvement because the line was bearish for months and months. The 200-day moving average line is still bearish but we will take things one at a time. Now look at the daily On-Balance-Volume (OBV) line which began to turn up from late March. Finally, buyers of GE have turned more aggressive. The Moving Average Convergence Divergence (MACD) crossed above the zero line in late April for an outright go long signal. The oscillator has corrected recently but could soon turn up again.

In this weekly bar chart of GE, below, we have mixed signals. Mixed is better than everything being bearish. Prices are still below the declining 40-week moving average line. The weekly OBV line looks like it is trying to stabilize while the MACD oscillator on this time frame continues to improve after its early April cover shorts buy signal.

In this Point and Figure chart of GE, below, we are still in a downtrend but we can see that a trade at $16 will improve the picture.

Bottom line: It will be a long recovery process for GE but things have started to improve. Another move to the upside and a close above $16 will improve things a bit.

Columnist Conversations

I recently highlighted WBA as one of the best values available in today's market. Walgreens ...
This trade is NOT for everyone (GE) came very close the 3/26 low @ 12.73 Gaps lower has been a recent daily e...
The support I needed to hold in XLB did not, so the trade is a bust......There may be some lower support at th...
British American Tobacco (BTI) is trading near multi-year lows, yielding 5.6% and about to ex-dividend on June...



News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.