Sunday, January 21, 2007

GE Analysis for 01.21.2007

Monthly chart shows price to be at its UBB (upper Bollinger Band). Chart looks toppy, with possible 5 waves up into the $38.50 area high. IF the $34.50 support is broken, THEN look for further downside.

Weekly chart definitely shows more selling activity atthe $38.50 high. Shooting star, and now bearish engulfing candle shows the selling pressure at this level.

$38.50 high has been strong resistance for about 4 weeks. Friday saw sellers coming into the market, with a gap down at the open, right at the prior level of support. Early buyers took price back above the support area, but were met with more sellers, as the price ended the day near its lows, and below the prior trading range. Sellers dumped the stock, despite GE reporting record annual earnings, boosted by strong performances at its infrastructure and healthcare businesses.

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