GE closes below its opening price unable to hold early session gains
General Electric Company (GE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GE finished the week -6.53% lower at 12.32 after losing $0.40 (-3.14%) today, significantly underperforming the Dow Jones (1.15%). Today's close at 12.32 marks the lowest recorded closing price since October 1st. Trading $0.30 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, GE lost -4.22% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GE as at Oct 12, 2018):
Friday's trading range has been $0.63 (5.03%), that's above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GE.
After trading down to 12.20 earlier during the day, the stock bounced off the key technical support level at 12.24 (S1). The failure to close below the support might increase that levels importance as support going forward. The market broke below the 50-day moving average at 12.55 today for the first time since July 11th.
Though GE is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to October's low at 11.77, downside momentum might speed up should the share mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for GE. Out of 86 times, GE closed lower 54.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.14% with an average market move of -0.24%.