GE finds buyers at key support level
General Electric Company (GE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GE ended the week unchanged at 12.83 after losing $0.11 (-0.85%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 12.90, General Electric confirmed its breakout through the prior session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (GE as at Feb 14, 2020):
Friday's trading range has been $0.31 (2.39%), that's slightly above the last trading month's daily average range of $0.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GE.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on January 31st, GE actually lost -1.53% on the following trading day.
After trading down to 12.75 earlier during the day, the market bounced off the key technical support level at 12.77 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for General Electric. Out of 378 times, GE closed higher 53.70% 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 49.47% with an average market move of 0.06%.