GE General Electric Monthly Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

The General Electric monthly chart is a surprise. Keystone is blind in one eye and can't see out of the other so after a few squints, and eye drops, yes, that is possie d on the monthly. In the sea of charts that are throwing off blood-red negative divergence all over the place (topping-out), here is GE, already beaten like a rented mule, collapsing from 28 to 6, a -80% bloodbath, over the last three years, and set up to rally on the monthly basis.

The broad stock market is likely placing a significant top right now; Friday may have been the highs. The tech, chip, and other high-flying stocks will experience a fall back to earth. The advantage of already being smacked around and left for dead is that everyone leaves you alone during a big selloff; GE is already laying in the gutter bleeding from its ear.

But after seeing a lot of negative charts, it is interesting to see a positive one, and this is a monthly chart forecasting a steady sideways to sideways higher move in General Electric for months and perhaps a couple-few years to come. If you have been looking for a long-term play that you can buy and hold for a long time, GE may be a very good bet for you.

Let's do some mumbo-jumbo. The green lines show a falling wedge vibe to the price action which is a bullish pattern. The positive divergence is glaring (green lines). With the lower low in price on the monthly basis, the indicators are all possie d sounding the all-clear for GE from here forward. The pink box for the ADX shows that the downward collapse in price is a strong trend lower, however, price is making a lower low but the ADX is slumping away lower, which means the strong downward trend may be petering out. If the ADX falls below the pink box, the strong downside trend is over.

The Aroon red line is oversold and likely heading lower which is bullish. The green line is oversold, down to zero, impossible to go lower, which is bullish going forward. The RSI, stochastics and money flow are all at or coming off oversold levels agreeable to an upward bias ahead. Price has violated the lower band so the middle band at 9.18 is in play and upper band at 12.82.

The daily chart shows an inverted H&S that targets 11.5 but it has a gap down by the head that may want filled at 5.5-5.8. The weekly chart created the May bounce with possie d, however, the MACD line on the weekly was weak and bleak at that time wanting to see another matching low. Thus, if the stock market drops now, which is expected, GE may get flushed a little bit too as traders throw everything overboard, but picking it up at that 5.5 to 6.0 area, even right now anywhere between 5.0 and 7.0 if you are a long-term player, scaling-in, is an attractive entry.

Keystone does not own GE now long or short but likes it as a long-term play, in fact it may be one of the few stocks that will perform at least flat or slightly good going forward as carnage may be occurring around us. If GE comes down quickly intraday to that 5.5-6.2 area, Keystone will likely snag it on the long side but instead of holding it for the long-term, probably cash it out after a move higher occurs. Since the stock market is likely to give up the ghost right now, it is not wise to buy any stock long, however, put GE on your long list and if carnage occurs over the coming days and this month, consider buying it.

The GE monthly chart is very bullish and an attractive long play for the LTBH (long-term-buy-and-hold) crowd. GE would also be an attractive place to park some dough if you are looking for a place to stash money that should not be too volatile going forward. GE already experienced its excitement over the last three years. 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.