Friday, October 01, 2010
Trade Update on General Electric (GE)
By Scott Redler
Since we listed General Electric (GE) on Monday there has been one fakeout, but more basing in the bull flag. The longer a stock bases, the more energy it builds for the ultimate measured move. Also, however, you have to be mindful that the more times a stock tries to break higher out of a flag and fails, the more likely it is to eventually break down. We are not at that point yet with GE, but make sure you have a firm stop below Tuesday's low. The stock should be get to 19.50, but in this environment we are not going to get greedy with price targets, especially with a slower mover like GE. We will look to exit this trade at the measured move seen on the second chart below.
Since we listed General Electric (GE) on Monday there has been one fakeout, but more basing in the bull flag. The longer a stock bases, the more energy it builds for the ultimate measured move. Also, however, you have to be mindful that the more times a stock tries to break higher out of a flag and fails, the more likely it is to eventually break down. We are not at that point yet with GE, but make sure you have a firm stop below Tuesday's low. The stock should be get to 19.50, but in this environment we are not going to get greedy with price targets, especially with a slower mover like GE. We will look to exit this trade at the measured move seen on the second chart below.
