General Electric Company (GE) is a diversified technology and financial services company and is listed on the New York Stock Exchange (NYSE) with a market capitalisation of around $290 billion. Price last traded at $30.92.
Let’s begin the analysis by looking at the big picture with the yearly chart.
GE YEARLY CHART
We can see a parabolic move up into the all time high which subsequently led to what appears to be an ABC corrective formation. That would imply price is now set to trade to new all time highs. I’m not so sure about that, however I do favour a move back up to test the high which stands at $60.50.
The Bollinger Bands show the wave C low bounced right off the lower band and I expect price to eventually bounce back up to the upper band. Price is now currently just above the middle band but I expect some more work to be done around this middle band with price to dip back beneath it before resume higher once again. This means the yearly low is likely still in front of us.
The PSAR indicator is bullish after price busted the dots on the upside last year.
I have added Fibonacci retracement levels of the whole move higher into the all time high and price did indeed make a deep retracement by clipping the 88.6% level. Price is currently back around the 50% level which looks to be providing some resistance. I expect after one last little dip lower this resistance will give way.
The Stochastic and MACD indicators are both bullish.
Let’s move on to the monthly chart.
GE MONTHLY CHART
The RSI looks to be building strength with a pattern of higher highs and higher lows developing while the MACD indicator is bullish.
The Bollinger Bands show the recent low spiked well below the lower band before reversing straight back up in bullish style. Price now looks to be trading between the middle and upper bands however I favour a move back to below the middle band and possibly back to the lower band before the uptrend resumes with authority.
