Chart of the Week: General Electric
This week we’re gonna be profiling big energy company/industrial conglomerate General Electric. GE is the symbol. Let’s take a look at this chart.
The stock has been in a strong uptrend
What’s notable here on this chart is, from the beginning of November, we’ve seen the stock make an enormous run from about the $105 area, and it’s currently about $137. That’s a huge 37 – 38% gain for this stock. And it’s pretty impressive actually when you take a look at the chart here. You can see from here it’s been making a series of higher and higher lows.
What I’ve found fascinating here is the multiple times that this stock, when it pulls back, it catches support just about every single time at the 20 day moving average. Twelve times it’s comes down to this 20 day moving average, which is this dotted line here. It pulls back down to this 20 day moving average; it doesn’t penetrate it. And it doesn’t get to the lower end of the bollinger band range.
What is that? The bollinger bands are these gold lines over here. Here’s the upper bollinger band, here’s the lower bollinger band. And General Electric has been in a textbook strong uptrend for months now, and it just reached a new high recently. You like a stock that makes higher and higher lows.
How much higher is it going to go? I really don’t know. It could move up to $140. Maybe get a pullback to that trend line that’s been in place over here and move right back up again in later March and into April.
Indicators all look great
Some of the other indicators over here are actually very strong:
You can see this money flow has been enormously strong.
We see that the MACD is now on a second buy signal here.
What’s impressive here is seeing this huge volume here from the end of January when the stock bounced off that 20 day moving average. Heavy volume the day after earnings came out. That is a good sign when the stock finds some support at the 20 day moving average.
The cloud is green.
There’s nothing really wrong with this chart here, except that it’s a little bit overbought. It could pull back a bit, maybe down to the $133 – 134 area. But I would be looking to snap shares up if it got back down there, maybe even buy some calls.
Don’t miss a single one of Bob’s charts! Get the Chart of the Week in your inbox every week!