GE: The single most important price level for GE!Hello traders and investors! Let’s talk about GE today! It is my first analysis about it, and I hope it helps!
First, in the 1h chart we see that it is trading slightly under the black line at $ 13.27 , which is a Key Point, as it worked as support and resistance alike, in the recent past. If GE loses this point for good, we can expect a sharper pullback in the daily or even the weekly charts.
If this chart pattern confirms to be an Island Reversal , then it is almost certain that it’ll seek lower levels. In order to avoid this scenario, GE must react quickly, and fill the most recent gap in the next upside movement.
Now, let’s see the daily chart:
Today’s candlestick is quite intense, but the day is not over yet, so, we still might see a reaction. But it seems GE is going to seek the 21 ema in the daily chart at least.
The trend is still clearly bullish, and pullbacks shouldn’t be scary at all. The 21 ema is an interesting support level, and any bullish reaction around here could be an opportunity to buy.
The problem is that the pullback might be more intense than we expect. See, the black line at $ 13.27 is still visible here, and it seems it is older than it looks, despite the fact it is still working wonders in the 1h chart. The weekly chart will give us an answer:
Yep, the black line is the top level prior to last year's crash. It is amazing how the market still remembers this price level, and how it works very well in the 1h chart more than one year later.
The problem is, if it closes under this black line in the weekly chart, the market will see this as a Dark Cloud Cover candlestick pattern, and the technical target will be the 21 ema in the weekly chart.
This could lead to a pullback that would last for some weeks, but still, won’t be enough to change the bullish bias seen since Sep 2020. In fact, it could be an amazing opportunity to buy, at a cheaper price.
Let’s be prepared for this scenario and wait calmly for more clues. If you liked this analysis, remember to follow me to keep in touch with my daily studies, and if this idea helped you, please, support it with your like!
Thank you very much!
