GE closes higher for the 3rd day in a row
General Electric Company (GE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GE finished Thursday at 8.12 gaining $0.56 (7.41%), notably outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 8.00, the share confirmed its breakout through the previous session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (GE as at Mar 26, 2020):
Thursday's trading range has been $0.79 (10.35%), that's slightly above the last trading month's daily average range of $0.74. Weekly volatility is also higher, being slightly above 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 White Candle.
Buyers managed to take out the key technical resistance level at 8.04 (now S1), which is likely to act as support going forward. After spiking up to 8.30 during the day, the stock found resistance at the 20-day moving average at 8.29. The last time this happened on January 28th, GE actually gained 10.32% on the following trading day.
While General Electric is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for General Electric. Out of 147 times, GE closed lower 57.14% 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 56.46% with an average market move of -0.52%.