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General Electric Co - (GE) - October 24, 2023

In today’s edition of the Daily Stock Report, we are going to take a look at General Electric Co (GE) which we last spoke about on April 14th, 2023, when the price of the shares were at $94.30. GE had first entered the Favored Zone of the SIA S&P 100 Index Report way back on January 6th at a price of $70.20. Today, the shares sit at $106.69. This represents a 52% price increase since entering the Favored Zone and a 13% increase since our last commentary on April 14th, 2023. Currently the shares sit in the 3rd spot in the S&P 100 Index, up 3 spots in the last quarter.

In looking at the Candlestick chart, we see the shares forming a nice double bottom pattern in July and October of last year and then the accumulation phase began which lasted right up until last month. In the past month, we see the shares have started to “peter out” somewhat with an early sign a consolidation phase may be beginning as the shares are right at its recent low in the $107.00 area. We may see support at the $100 psychological level. If that fails to hold, the next level of support can be found at $90.00. To the upside, resistance can be found at its recent high of $117.00.

In the attached Point and Figure Chart at a 2% scale, we see a very strong accumulation phase which started in January of this year with a rising column of X’s up until August without even a 3-box reversal. Now we see another sign the shares may be entering a consolidation phase as the shares failed to hold its 3-box reversal support area of $107.99. The next area of support can be found at its 50% retracement level of $101.76 and, below that, the $88.59 area.

To the upside, resistance can be found at its recent high and 3 box reversal area of $116.89 to $119.22. It will be interesting to see going forward if this early-stage consolidation phase can resolve itself to the upside or if we trend lower into distribution phase. With an SMAX score of 8 out of 10, GE is showing new-term strength against most asset classes.

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