General Electric (GE) is expected to report its latest quarterly figures on Tuesday. Let's check out the charts of this conglomerate ahead of the results.
In the daily bar chart of GE, below, we can see that the shares quickly reacted lower in November after a spike high. Prices declined below the 50-day and 200-day moving average lines but then recovered to the underside of the 200-day line last week. GE failed at the underside of the 200-day giving traders a great setup to sell the stock.
GE has since closed below the 50-day line and the On-Balance-Volume (OBV) line has turned lower to continue the weak trend from June. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit, sell signal.
In the weekly Japanese candlestick chart of GE, below, we can see a negative picture with a top reversal pattern over the past three weeks. Prices failed at the underside of the declining 40-week moving average line.
The weekly OBV line turned lower from August. The MACD oscillator is below the zero line in sell territory.
In this daily Point and Figure chart of GE, below, we can see an upside price target of $128 but there is a fair amount of chart resistance in the way of that projection. A break below $91 is likely to weaken the picture.
Bottom-line strategy: I have no idea or special knowledge what GE will report to shareholders Tuesday but the charts and indicators tell me to avoid the long side. Weakness in the broader market averages is likely to weigh on GE.
