GE breaks above 100-day moving average for the first time since July 23rd
General Electric Company (GE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GE finished Wednesday at 6.75 surging $0.65 (10.66%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over four months. Today's close at 6.75 marks the highest recorded closing price since July 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 6.22, the market confirmed its breakout through the previous session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (GE as at Sep 16, 2020):
Wednesday's trading range has been $0.76 (12.46%), that's far above the last trading month's daily average range of $0.26. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GE.
Even with a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on August 4th, GE gained 4.23% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 100-day moving average at 6.65 for the first time since July 23rd. Prices are trading close to the key technical resistance level at 6.86 (R1). After having been unable to move lower than 6.02 in the previous session, General Electric found buyers again around the same price level today at 6.05.
GE shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Trading close to July's high at 7.21 we might see further upside momentum if potential buy stops at the level get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for General Electric. Out of 85 times, GE closed lower 56.47% 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 52.94% with an average market move of -0.59%.