Shares of General Electric (GE) were raised to an outperform ("Buy") rating by a sell-side firm Tuesday. Let's check out the charts of this industrial powerhouse.
In this daily bar chart of GE, below, we can see that prices made a potential double bottom pattern. I use the word "potential" because the volume pattern is just not right in my opinion. Volume should expand in the direction of the trend. Notice how trading volume decreases from late October to early December as prices rallied. Prices went up which makes the longs happy but the power or volume behind the move up decreased - this is not what we want to see.
Sure the On-Balance-Volume (OBV) line moved up and broke above its August peak but its durability is questionable. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.