Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

General Electric (GE) Has Been Falling Sharply; Let's Monitor the 19-20 Area

Last time we looked at General Electric $GE, we noted that it broke a key support and therefore opened up a bearish outlook. We noted that the breakout opened up the 19-20 area, and the market wasted selling GE down to this area. 

GE Daily Chart

(click to enlarge)

Key Support:
- The weekly chart shows that price has been falling like a knife recently. 
- This 19-20 area does represent a key support pivot. 
- We should monitor to see if there is a reaction here. 
- I think there is a chance for price to bounce up from here, but it is too early to call with such sharp bearish price action.
- If price does stall here around 20, then it might be worth considering a possible bounce back towards 23.50-24. 
- It is quite possible that because of the bearish momentum, price will overshoot this support, so give it some elbow space to let's say 18. 
- GE's bull run is over. Now, we are just wondering where the consolidation low will be. 
- If price falls below 18, 14 will be the next critical support.