GE Stock Is Breaking Down
After what must have seemed like an eternity of consolidation for General Electric Company (NYSE: GE) traders, the stock seems to have finally made its first definitive move in over a month. The bad news for GE bulls is that the move is to the downside.
GE shareholders have been on quite a ride since the end of June. After dipping as low as $29.17 on June 27, GE stock went on a tear. Incredibly, the stock closed higher on 14 of the next 15 trading days, ultimately peaking at $33.00 ahead of Q2 earnings on July 22.
GE came through with a solid EPS beat, but the market was disappointed with its $33.5 billion in Q2 revenue. GE stock immediately began a string of eight consecutive down days that took the stock to $31.14 by July 29.
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After the big winning streak and the big losing streak, GE immediately transitioned into another extended streak, but this time it was a consolidation streak. From July 27 to September 6, GE stock never closed a trading day above $31.50 or below $31.00. That’s an incredibly long and incredibly narrow consolidation range.
Unfortunately, after two consecutive days of losses this week, GE is poised to close below $31, an indicator that the stock’s next major move could be to the downside. If the $31 level falls, the stock’s next technical support level would likely be its June low in the $27 range.
Traders will be watching closely in the closing hours to see if GE bounces off its dip and closes back inside its previous range or if the selloff gains momentum into the close.
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