Tuesday, 17 January 2012

GE - Charting Summary - Overbought Indicators

Latest technical chart of the day: GE

As you can see on the chart, GE has been on a rocket pack since beginning of Dec.  There were 2 clear pauses in mid Dec and end Jan and now in mid Jan.  So there's been 3 stability points, about half a month between each.  As seen by the RSI and MACD and Aroon Oscillators, the technical indicators are looking very overbought.  The RSI/Aroon both showed overbought in end Dec but it continued upwards but MACD has now confirmed a reversing in its momentum. 

Can GE continue its upward price action?  There's always the possibility but there is significant resistance now.  It all rests on GE's earnings scheduled for Friday AM.  Unless it strongly beats expectations, expect a pull back. 

Disclosure: Long on GE but recently entered protective put positions.

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