In fact, one could argue that GE stock has been consolidating for most of 2021.
The company has done better than expected, delivering upside guides to its free cash flow outlook.
There have been a lot of issues for General Electric to navigate over the past two years, ranging from Boeing’s (BA) - Get Boeing Company Report company-specific issues to macro issues related to the COVID-19 pandemic.
On Tuesday morning, we’ll get an idea of how the company weathered the past three months and what management expects going forward.
If it’s a subpar result and outlook, it may be more of the same for the stock. However, if management can deliver, we could be looking at a potentially large breakout.
Let’s look at the chart.
Trading GE Stock
In the first quarter, General Electric caught a nice pop up to the $115 area (on a post-split adjusted basis). However, that nice rally was met with rapid, aggressive selling, which sent it to a low near $95.50 a few days later.
That was in March, but we’ve since seen the range get even tighter.
While $115 remains resistance and the $95.50 to $98 area has been support, we’ve mostly seen support come into play around $100 to $102 and resistance come into play between $107 and $108.
As GE stock rides the 200-day and 50-week moving averages higher, I want to see if earnings are enough to thrust shares above $108. A move over $108 would immediately open the door to $115.
If GE stock can clear $115, the $125 to $128 area would be the next zone to focus on, with the 161.8% extension coming into play near the latter, at $127.98.
On the downside, the 50-day and 200-day moving averages would be a great area to hold after the report. That would equate to a post-earnings loss of 2.5% or less.
Should shares break these measures, the 50-week moving average is the main focus. Below that puts $98 on the table, then $95.50.