GE closes above its opening price after recovering from early selling pressure
General Electric Company (GE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
GE ended the week 8.63% higher at 8.94 after flat today on low volume, slightly outperforming the S&P 500 (-0.01%). Trading up to $0.15 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GE as at Jan 11, 2019):
Friday's trading range has been $0.23 (2.59%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GE.
One bullish candlestick pattern matches today's price action, the Tweezer Top.
Prices are trading close to the key technical resistance level at 9.04 (R1). After having been unable to move above 8.95 in the prior session, General Electric ran into sellers again around the same price level today, failing to move higher than 8.95. The last time this happened on January 4th, GE actually gained 6.20% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 7.78.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 9.04 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for General Electric. Out of 21 times, GE closed higher 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 76.19% with an average market move of 2.80%.