Hello Judy,
Our good friend Wizbang's on the road -- and I hand chart GE as it's one of my favorites, so here's a little splash.
*
84 X X *
83 X O X O *
82 X O X O *
81 X O X O *
80 O X O O
79 O X * O < First Double Bottom Sell Signal
78 O X * O
77 O X + O
76 O + O *
75 + * O * < Spread Triple Bottom Sell Signal
74 * O
73 * O
72 O
71 * O *
70 * *
69 *
68 *
67 *
*
Top down: 1) Bullish % in Bull Alert at 30%; 2) Electronics Sector in Bull Alert at 18%; 3) Relative Strength on a buy signal and in X's; 4) Short term bearish (on a sell signal); 5)Long term bearish (trading below the Bearish Resistance Line (BRL)); 6) Bearish price objective of 58 (but it's incomplete until a reversal up); 7) Current column of O's touched the Bullish Support Line (BSL) at 79 and then penetrated with a confirming sell signal which reversed the bullish trading channel to a bearish trading channel; 8) A new BRL was then established at 85; 9) The first Bearish Support/Resitance Line (BS/RL) was touched and penetrated at 77; 10) The second BS/RL was touched and then penetrated at 72; 11) Next BS/RL at 67 and that's it until 52; 12) Quad horizontal support at 71 going back to Dec of 97; 13)Dorsey Wright site has the weekly momentum as a negative; 14) Birinyi oversold at 71% with a bottom at 71; and 15) Meets a few of the shakeout criteria.
Bottom line: GE closed at 75 3/8 so a reversal up could certainly occur tomorrow. (As I've discussed before, stocks that close within 10% of the high low range deducted from the high, have an 85% chance of going higher the next day, and GE did that.) But, the next buy signal does not occur until 85, which would also break the BRL. There is sure to be some X and O columns created prior to 85 which would create a lower buy signal, but leave the stock long term bearish until it breaks the BRL. There will be some good opportunities for traders. (I also like to confirm with Dave Evans' 5,13 and 40 MA's and his short term MACD of 8,17,9 -- and they don't look real promising at this moment.)
I guess we'll see.
Take care,
Eric
|
