GE General Electric Weekly Chart Rising Wedge Lower Trend Line Failure

GE weekly chart shows the long term rising wedge from the March 2009 bottom, and now the lower trend line failure over the last couple weeks. The downward sloping 200 MA, now at 19.8, is bearish and note how price is using the 200 MA as a ceiling of resistance it cannot get back above. The 20 MA is above the 50 MA which is still bullish, so watch this cross closely. Price is under the 20 MA which is bearish.

Note the blue circles showing that these indicators were long and strong with the price move up. Overbot stochastics and negatively diverged histogram, however, spanked the price down from the February doji candle top. But, the non-diverged blue circle indicators would have liked to see a matching or higher high in price compared to February--this has not happened. There is no rule that it has to happen, price can simply continue to roll over from here, also, perhaps a trip back up in price may occur in the future under a QE3 scenario. The multinationals such as GE have also benefited greatly from the lower dollar so this may nullify the concept of price coming back up--since it was artificially floated up begin with.

The light black line lower trend line targets 18-ish as support, which also forms a confluence with the rising 50 MA, now at 177.66 and moving up, as well as horizontal support at 18. Note the critical horizontal support area being tested right now at 18.8-19.2. Projection is down to sideways down moving forward to test the 18 area, then reassess. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.