GE Struggles During Weekly Rounded Arc Lower
Shares of General Electric (GE) sank lower today after forming a larger Weekly Arc Reversal pattern.
Let’s see the pattern and pinpoint the current support/target levels for price right now:
We see a long term uptrend from 2012 continue until the 2016 peak above $32.00.
During the 2016 period, price stalled with a “Rounded Reversal” or “Rounded Arc” pattern.
This is one of my favorite patterns as it traces out a stable reversal pathway (as opposed to a V-Spike sudden reversal).
The negative momentum divergences set the stage for a decline/sell-phase that continues today.
Price traded lower toward the prior support pivot near $27.50 per share and then broke beneath it toward our current target of $26.00 which is the prior range Midpoint.
Should sellers take the arc pattern even lower, we’ll be aiming for the spot just above $24.00.
Here’s the Daily Chart if you’re interested on how we got here on a lower frame:
The Daily Chart highlights the downtrend via falling moving averages.
The $27.50 area served as initial/expected support with positive divergences, but sellers kept pressure on price, resulting in the recent collapse toward the $26.00 Weekly Target.
You can see the prior signals from momentum, price, and volume along the path lower.
Focus on the Weekly levels and the Rounded Arc/Reversal pattern for an example.
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Corey Rosenbloom, CMT
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