General Electric GE Finds Tiny Rounded Reversal Bounce

Sep 1, 2017: 1:10 PM CST

General Electric (GE) is a horrendously downtrending stock but we’re seeing a big counter-trend bounce taking place now off support on positive divergences.

Let’s step inside this price action, paint a target, and plan for the future swing yet to come:

GE Rounded Reversal Bounce

Shares peaked at $33.00 per share last July 2016 and have been strongly downtrending since then.

Price is down 25% from the high in a daily chart downtrend.

For the second time since May 2017, we’re seeing a positive divergence help send shares higher on a bounce off support.

Last time price rallied through the falling 20 day EMA and peaked just above the 50 day EMA before resuming the downtrend in motion.

Aggressive traders can play the bullish swing “up away from” the $24.50 level “toward” the $26.00 target this time in the event we get a similar short-term (counter-trend) bounce outcome.

Other traders can await to short-sell the retracement toward this target, playing for the downtrend to continue into the future.

The bearish downtrend would end with a stabilization at the $24.50 level and multiple closes above the 50 day EMA.

Until then, odds favor trend continuation lower – as trends in motion tend to continue rather than reverse.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day.

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