Last up this week is General Electric (GE - Get Report), a stock that's been trailing the broad market for most of the year, even if it's making up some of that lost ground this week. Right now, GE is showing traders an "if/then setup," a contingent setup whose direction is dependent on which way shares break out of their sideways channel.
Simply put, GE's if/then setup works like this: If shares break out above resistance (a range between $16.5 and $17), then buy. If shares break down below support (at $14.75), then GE is a short candidate. GE's push into its resistance range yesterday adds some promise for longs, but realistically $17 is the more important barrier for shares to push through because it was set more recently. Until one of those conditions gets met, I'd suggest sitting on the sidelines with this stock.
When a breakout does happen, keep a protective stop back just within the channel.GE, a Warren Buffett holding, shows up on recent lists of 5 Auto Stocks in Top Gear and the 5 Worst-Performing Dow Stocks of the Year. To see this week's trades in action, check out the High Volume Technicals portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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