With the over-arching 17-week cycle low due in the next two weeks, yesterday’s downside reversal in General Electric (GE) could be very significant technically, especially because the price structure plunged below its 20- and 50-day EMA’s after trading above them for the better part of six consecutive sessions. All eyes will be on key resistance at 16.30/32 and key support along the 200-day EMA, now at 15.54. My pattern and momentum work argue for weakness in GE to test and likely violate the 200-day EMA – on the way to a target zone of 14.80/50 in the upcoming sessions.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.