Not all of the names we're looking at are bullish -- the sole short side play on our list is General Electric (GE). General Electric has had a strong year, with shares up around 21%. But this conglomerate is starting to look toppy thanks to a head and shoulders pattern, so GE bulls need to beware.
The head and shoulders is a setup that indicates exhaustion among buyers -- it's formed by two swing highs that top out at around the same level (the shoulders), that are separated by a higher high (the head). A breakdown below the neckline is the sell (or short) signal for GE.
The fact that the right shoulder has been stretching out means that GE's downside setup could very well get cancelled out down the road. For now, though, this setup is worth keeping a close eye on -- particularly as long as anxiety remains the driving force for investors here. A move below the neckline makes $18 a likely price target.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.
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