Things are a little more straightforward in shares of General Electric (GE). GE is another name that's bounced higher alongside the broad market for the last ten months, and you don't have to be an expert technical analyst to figure out what's going on in shares from here. This stock is in a textbook uptrending channel right now.
General Electric pinballed off of trend line support this week, gapping higher as shares caught a bid at their long-term price floor. And generally speaking, it makes sense to buy the bounce for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong).
Momentum adds some extra confirmation to the move; the 14-day RSI line broke its downtrend at the start of the week, a signal that's historically been followed by a three-month rally period. If you decide to pick up shares here, consider unloading before they get too close to trend line resistance.
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