General Electric Co (GE) reported their Q3 earnings numbers Tuesday morning and now the stock is trading lower. Let's check and see if this is a temporary dip or the start of a decline.
In this daily bar chart of GE, below, we can see that prices have been moving sideways since May. Prices have crisscrossed the 50-day moving average line. The slope of the 200-day moving average line is negative and intersects around $80 now.
The On-Balance-Volume (OBV) line made a low in July and is trying to make a higher low in October. The Moving Average Convergence Divergence (MACD) oscillator has been making higher lows since May and is just now crossing above the zero line.
In this weekly Japanese candlestick chart of GE, below, we can see a potential double bottom pattern in July and September. Prices need to make a strong close above $80 to complete the pattern, otherwise we are just seeing a consolidation pattern. The price action remains below the declining 40-week moving average line.
The OBV line turned lower from August 2021 but now could be making a small double bottom reversal. The MACD oscillator turned up from July but is still below the zero line.
In this daily Point and Figure chart of GE, below, we can see a nearby price target of $79.
In this weekly Point and Figure chart of GE, below, we can see a downside price target in the $49 area.
Bottom line strategy: I would look for GE to trade sideways for several more months to broaden out its potential base pattern. As part of this basing action I cannot rule out a temporary decline to a new low.
