GE: CSI Wall Street: Charts V Fundamentals - Truth V Belief
Atualizado
GE Nature of the Beast
GE is a 3/6 stock - it builds in multiples of 3 and 6: 60 all time high, 6 crash low to 33 post crash high. Last cycle high
42. This year's big numbers are 33, 27, a massive break at 24 (last kiss at 23.82) followed by a $6 straight fall to 18 where it
languishes now after a low for the year at 17.48. It really likes these numbers, as is plain to see to anyone who cares to
examine the charts, long term and short. These numbers hide in plain sight. It's a beautiful, faithful stock - in some ways as
beautiful as Bitcoin, except for bears, ever since it hit the top parallel back in mid 2016.
Each of the last three rally attempts have all been 100 pips before GE crashes lower still. Price has memory, in that when
a large corrective pattern such as this is eventually broken, price accelerates, the brakes/parallels have failed, and it will
seek support from old structure lows and highs from the past - just as GE is doing now. It's therefore likely to make a final
low at one of two spots: Where it is now at 18.00-17.48 - or 300 pips lower at 14.50. The fact that it has only been able to
rally 100 pips again from 17.48 is not a good sign but it cannot be shorted unless 17.40 gives way at any point - in which
case it's a worthwhile sell back to 14.55 where it then becomes a buy again with stops 20 points lower, requiring a complete
reversal at that point if 14.55 is then struck.
It's not much better than 50/50 here as things stand, with nothing for bulls to hang their hats on yet other than price
stopping at the only support left above 14.50. Some might prefer to stand back and watch to see if 17.40 gives way,
turning the odds from 50/50 to closer to 80-90% and looking to short here and buy back from 14.55 and get long again.
That would be so much clearer and simpler and looks very likely given a little more time.
For GE to show that the low is here, at 18.05 -17.48 it has to hold up at 17.48 on any retest Tuesday and rally at least 120
pips from 17.48 and then use 18.05 as support on any subsequent pull-back. It should then attract more buyers up
to 19.39 where it's likely to fall away again.
GE is a 3/6 stock - it builds in multiples of 3 and 6: 60 all time high, 6 crash low to 33 post crash high. Last cycle high
42. This year's big numbers are 33, 27, a massive break at 24 (last kiss at 23.82) followed by a $6 straight fall to 18 where it
languishes now after a low for the year at 17.48. It really likes these numbers, as is plain to see to anyone who cares to
examine the charts, long term and short. These numbers hide in plain sight. It's a beautiful, faithful stock - in some ways as
beautiful as Bitcoin, except for bears, ever since it hit the top parallel back in mid 2016.
Each of the last three rally attempts have all been 100 pips before GE crashes lower still. Price has memory, in that when
a large corrective pattern such as this is eventually broken, price accelerates, the brakes/parallels have failed, and it will
seek support from old structure lows and highs from the past - just as GE is doing now. It's therefore likely to make a final
low at one of two spots: Where it is now at 18.00-17.48 - or 300 pips lower at 14.50. The fact that it has only been able to
rally 100 pips again from 17.48 is not a good sign but it cannot be shorted unless 17.40 gives way at any point - in which
case it's a worthwhile sell back to 14.55 where it then becomes a buy again with stops 20 points lower, requiring a complete
reversal at that point if 14.55 is then struck.
It's not much better than 50/50 here as things stand, with nothing for bulls to hang their hats on yet other than price
stopping at the only support left above 14.50. Some might prefer to stand back and watch to see if 17.40 gives way,
turning the odds from 50/50 to closer to 80-90% and looking to short here and buy back from 14.55 and get long again.
That would be so much clearer and simpler and looks very likely given a little more time.
For GE to show that the low is here, at 18.05 -17.48 it has to hold up at 17.48 on any retest Tuesday and rally at least 120
pips from 17.48 and then use 18.05 as support on any subsequent pull-back. It should then attract more buyers up
to 19.39 where it's likely to fall away again.
Nota
GE Update Potential Buy Points for Wednesday
Further to last comment, only looking to buy this if it comes
close to the recent low giving a chance to place a fairly tight
stop underneath. This move today looks corrective, a small
continuation pattern before GE moves higher - it's losing
downward momentum, clearly. It can still fall away to the low
again but that will present a great risk/reward play with a
stop just 10 pips under the low, so 17.38.
And it can also stop right here, at 17.80 and then wriggle free
of the little parallel to the upside and then break above 18.03.
So there actually 4 chances to trade GE around these levels:
1. On the break above the upper parallel
2. On any retest of 17.50 with stop 12 pips lower (perfection)
3. On break above 18.10 on first minor pull back
4. On move above 18.53
Looking for rally to 19.36- 19.80 range before it comes off again.
Plan B: On downside, key near term support lies at 17.48. If
at any point in future GE breaks below 17.38 stops will fly and
GE will break nearly 300 pips lower to the next support at
14.55-14.49 - a great short if we see it any point, looking to
reverse position again at this lower target and go long again.
Nota
GE Long Term Chart 60 to 6 A perfect 'Gann' Stock. Nota
So we never got a chance down by the lows, but we did get the next one: the break above the small parallels channelling the tiny corrective move yesterday and Monday.It was a really good, painless/stress-free break too. So now, after GE filled a small gap (left on chart) it's coming back to support at 18.07 (tweaked by a couple of pips) and should hold up there and bounce again (low risk entry point with stops below 18.00 . If so, The next challenge should be at 18.46 (take profits) - we know that each of the last three pathetic rally attempts have all been 100 pips...which is exactly where 18.46 lies...then we only go long again once we can see 18.50 has been broken on upside, looking for 19.36 where look to close (just under here) and some may then wish to short with stops above. More as this develops. Better than Bitcoin today too! Be lucky
Nota
For Mr Draper
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