You are here: Home > articles > Forex > Technical Analysis – General Electric stock strongly bearish but stands above 50-day SMA
Technical Analysis – General Electric stock strongly bearish but stands above 50-day SMA
January 31, 2019 1:26 pmVideo
Latest News
- Video market update for April 23, 2024 April 23, 2024
- Trading Signals for EUR/USD for April 23-25, 2024: buy above 1.0681 (21 SMA – 3/8 Murray) April 23, 2024
- Analysis for the EUR/USD pair on April 23rd. Euro currency prepares for another decline April 23, 2024
- Analysis for the GBP/USD pair on April 23rd. Sellers failed to take the mark of 1.2313 on the first attempt April 23, 2024
- Technical Analysis – AUDUSD gears up after disappointing US PMIs April 23, 2024
- Technical Analysis – Meta stock falls below 50-SMA ahead of earnings April 23, 2024
- USD/JPY: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- GBP/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Technical Analysis – USDJPY fights with new 34-year high April 23, 2024
- EUR/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Alphabet Q1 Earnings: Strong ad business but AI initiatives lag – Stock Markets April 23, 2024
- GBP/USD: trading plan for the US session on April 23rd (analysis of morning deals). The pound continues to decline April 23, 2024
- EUR/USD: trading plan for the US session on April 23rd (analysis of morning deals). The euro has shown rapid growth April 23, 2024
- EUR/USD. April 23rd. Bulls and bears are in balance April 23, 2024
- GBP/USD. April 23rd. The bears continue to attack April 23, 2024
- Gold edges lower as Middle East tensions ease April 23, 2024
- Slightly lower volatility across the board ahead of key US data – Volatility Watch April 23, 2024
- Technical Analysis – UK 100 index hits new all-time highs but rally may be cooling April 23, 2024
- XM Teams up with ‘Charity Right’ for Change April 23, 2024
- Technical Analysis – US 500 index rebounds off 2-month low below 5,000 April 23, 2024
General Electric stock price is trying to complete the eighth consecutive green week after the bounce off the 6.70 support level. The aggressive bearish rally started after the pullback on the 33.00 resistance level, driving the price towards the 6.70 low in the previous month. Moreover, the price is holding within the narrow Bollinger band in the daily timeframe as it failed to move higher after it almost touched the upper boundary.
Looking at momentum oscillators on the daily chart, they suggest further increases may be on the cards in the short-term. The RSI holds above its neutral 50 line and is pointing upwards, detecting positive momentum. However, the MACD oscillator is flattening around the trigger line and is moving in the bullish area.
If the bulls drive the price higher above the upper Bollinger band and the 9.20 resistance, this would likely determine a bullish correction and prices may stall initially near the 11.20 barrier, which stands near the long-term falling trend line and the 200-day simple moving average (SMA). A potential upside violation of this zone would raise the likelihood of more advances towards the 23.6% Fibonacci retracement level of the downleg from 33.00 to 6.70, near 12.87.
In case of declines in the stock market, immediate support may be found near the 50-day SMA and the lower Bollinger band currently at 8.00. More losses could send prices towards the record low of 6.70, while steeper negative pressure could create a fresh lower low.
To sum up, General Electric has been trading in a strong bearish trend since January 2018, while only a rally above the 61.8% Fibonacci would switch the negative outlook to positive.
Related Posts: