Bullish Reversal Patterns in General Electric

As anticipated last week, sentiment has pivoted sharply toward cyclical reopening stocks like small caps and industrials. Meanwhile the Nasdaq has struggled.

Now one of the most iconic industrial stocks of all has some potentially bullish reversal patterns: General Electric.

GE has lost more than three-quarters of its value since the end of 2016. Its troubles have been well documented and discussed in the news and analyst reports.

However, the chart may show some long-term reversal patterns.

First, GE slightly undercut but held its March 2009 low of $5.51 in May. Holding an 11-year level like that can be important.

Second, we see the May low of $5.48 flanked on either side by higher lows of $5.90 in March and $6 on July 31. That’s a potential inverse head & shoulders pattern.

Finally, GE had a bullish outside candle on Friday, August 7, another potentially bullish signal.

This comes at a time when the SPDR Industrial Fund is up 6.4% in the last five sessions, while the Nasdaq is up less than 0.5%.

That kind of relative strength, plus the chart patterns, could focus attention on GE on in coming sessions.