Stock of the day: General Electric

Let’s take a look at General Electric (GE), which posted its earnings yesterday. Unfortunately, the earnings disappointed investors, as GE posted a slightly better-than-expected EPS, but missed on revenue. The market reacted harshly, leading to a significant 9% drop in the stock price during the session. This sharp decline is evident on the chart, as GE moved from its long-term highs to local lows.

From a technical analysis standpoint, this movement is particularly significant as the price is currently testing two key support levels. The first support is a horizontal support marked with orange color, which has been crucial in recent price action. The second support is the upper line of a symmetric triangle pattern, marked with a black line, which has acted as a technical barrier in the past.

As long as GE remains above these two support levels, the long-term sentiment for the stock remains positive. However, should the price break below these levels and close a day beneath both, it will signal a bearish shift. A close below these supports would provide a long-term signal to sell, as the break would indicate that sellers have taken control of the market.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-general-electric-4