GE closes lower for the 4th day in a row
General Electric Company (GE) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GE finished Monday at 11.16 losing $0.11 (-0.98%), slightly underperforming the S&P 500 (-0.86%). Today's close at 11.16 marks the lowest recorded closing price since November 6th. Trading $0.21 higher after the open, General Electric was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Friday's low at 11.22, the stock confirmed its breakout through the prior session low after trading up to $0.08 below it intraday.
Daily Candlestick Chart (GE as at Dec 02, 2019):
Monday's trading range has been $0.38 (3.36%), that's far above the last trading month's daily average range of $0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for GE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on September 30th, GE actually lost -3.69% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for General Electric. Out of 520 times, GE closed higher 55.96% 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 52.12% with an average market move of 0.13%.