Watch for GE to make a move to retest the lows around $5.50 a share. GE has found temporary support at $6.00 and is forming a bear flag pattern. The hour chart on the right shows respect of the minor trendline of the flag. Look for a break in the trendline before going short.
GE had a wide miss on earnings last week, driving share prices down on heavy selling volume. This current rally is occurring on very light volume, contrary to what we should be seeing on a reversal. COVID-19 will continue to affect GE's retail and aerospace sectors, with engine demand way down.
Short position should be re-evaluated at the lows around $5.50. A break above resistance in the $6.50 zone should invalidate this idea.
This is an idea only, and should not be considered investment advice. Trade according to your own rules and risk tolerance.
GE had a wide miss on earnings last week, driving share prices down on heavy selling volume. This current rally is occurring on very light volume, contrary to what we should be seeing on a reversal. COVID-19 will continue to affect GE's retail and aerospace sectors, with engine demand way down.
Short position should be re-evaluated at the lows around $5.50. A break above resistance in the $6.50 zone should invalidate this idea.
This is an idea only, and should not be considered investment advice. Trade according to your own rules and risk tolerance.