Stock of the day: General Electric

The bounce on the stock market is a fact. Now let’s see if it will be just a bounce or the start of something bigger, like maybe a proper reversal and a new bullish wave. So far, it looks optimistic and it should not be a surprise that because of this, we can see quite a few interesting bullish occasions on the market, one of them being GE – General Electric.

Up until last week, it was not looking really encouraging. GE, was declining without any hopes for a better tomorrow. GE was showing a surprising weakness as the price managed to escape from the falling wedge (red) to the downside.

The slide didn’t last long though, because the price managed to create a reversal pattern – Inverse Head and Shoulders (yellow). On Friday, GE broke the neckline of this formation (blue), which brought us a proper buy signal.

The first target for buyers should be to enter the wedge and the second one should be to break its upper line. The positive sentiment stays here as long as the price stays above the right shoulder. The price getting there would cancel the reversal attempt.