On Tuesday, General Electric (GE) will be holding an analyst day. Our own Jim Cramer said during his Mad Money program Friday night that the numbers will be all investors care about at GE. I care about the charts, though, so let's check on "old GE" ahead of their analyst day.
In the daily bar chart of GE, below, we can see that prices have traded sideways between $11 and $9 the past 4 1/2 months. Prices have crossed above and below the 50-day and the 200-day moving average lines. GE is currently above both lines, which are right on top of each other.
The trading volume looks like it has diminished since early February as the trading range has narrowed. The daily On-Balance-Volume (OBV) line has been flat to slightly lower since early February signaling that sellers are slightly more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line the past three months telling us that GE lacks any sustained price strength.
In the weekly bar chart of GE, below, we can see a long and punishing decline in price. GE is likely to need a long repair process before it tries the upside again. The 40-week moving average line is still pointed down.
The weekly OBV line has improved slightly this year and the MACD oscillator is back to the zero line from below. This oscillator could go above the zero line (bullish) or turn back down again (bearish).
In this long-term Point and Figure chart of GE, below, we can see a longer-term downside price target of $4. A rally to $11 or $11.50 will be more promising should it develop, however, there seems to be considerable resistance around $11.50.
Bottom-line strategy: The charts and indicators of GE appear to be stuck in neutral. I would anticipate that we continue to see a $9.00 to $11.50 trading range.