General Electric Co. (NYSE:GE) stock was trading higher Thursday and looks to be in a descending triangle pattern.
Below is a technical look at the chart.
General Electric Daily Chart Analysis: The daily chart above shows that the stock looks to be consolidating after breaking above resistance near $12.
This level is one the stock previously struggled to break. Now, the stock is trading above this level, and it is looking to hold this level as support.
Connecting the highs on the chart shows that the stock has lower highs moving toward the $12 level. This pattern is known as a descending triangle pattern.
The stock is trading well above the 200-day moving average (blue), indicating that sentiment in the stock may be bullish. This indicator may hold as support at some point in the future.
What’s Next? Bullish technical traders would like to see the stock cross above the line that connects the lows. A break above this line could indicate the trend is changing.
The price is nearing the top resistance line. Bulls would like a break above with volume for the potential trend change to occur.
Bearish technical traders would like to see the stock continue to fall to the potential support level. If the price were to be able to fall below this level and consolidate for a time, the price may see a further push lower.
If the price were to fall below this support level, the price may have room to fall all the way down to the $10 level, as this is an area where the stock has previously found support.
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