GE General Electric Weekly and Daily Charts Overbot Rising Wedges Negative Divergence

Lots of bullish talk about GE yesterday but the charts clearly show nastiness ahead. When both the daily and weekly charts agree with negative divergence that is very detrimental to a stock or index.  The daily chart shows a spank down beginning yesterday. An H&S pattern appears on the daily chart with a head at 24, neckline at 23, target 22. Also, a potential island reversal may occur where price comes down to 23 then collapses to 22.50 in an instant. At the least the gap at 22.5-23.0 will require filling.

On the weekly, the W pattern bottom targeted 22 which was easily achieved on the way up. The weekly may be developing a longer term H&S with head at 24, neckline at 20, target at 16. The charts show that the gains in GE are likely in the rear-view mirror. CEO Immelt is taking a big payday at the top. The red lines show the negative divergence that will spank GE lower for the weeks ahead. A move through 20-24 is reasonable into summer and then likely lower as the months tick by. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.