Stock of the day: General Electric
07 October 2024
In today's Stock of the Day analysis, I want to revisit General Electric (GE), which I last analyzed on September 17th. At that time, the price was breaking out from a symmetrical triangle, marked with black lines, to the upside. This breakout provided a buy signal, which has played out well over the past few weeks.
Currently, we are witnessing a correction, forming a smaller triangle or pennant, highlighted with green lines. Typically, a pennant formation following an upward trend suggests a continuation pattern, potentially resulting in another breakout to the upside and offering a fresh buy signal.
However, if the price breaks the lower line of the pennant, it could signal a bearish shift. In such a case, the next target would be the orange horizontal support. Despite this short-term bearish possibility, the long-term sentiment for General Electric remains positive.