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GE Technical Outlook

|Includes: General Electric Company (GE)

General Electric Co (NYSE: GE) has been able to hold $16 during last week's difficult market period. This is a good indication that stock is consolidating between $17.50 and $16.

The longer it stays around those levels the better entry we will be able to get as the major moving averages will be able to play catch up with the current price action.

GE broke out of the 200 day exponential moving average, when it move above $15. This big explosive momentum move now needs time to rest, we don't anticipate a big move above $17 for now, as the over-extension with the 50 moving average currently set around $14.40 is very significant with the current price action, so expect more sideways movement in this consolidation area.

A break of $16 could move the stock back to retest the breakout level of $15.

Disclosure: is Long GE