General Electric stock strongly bearish; looking oversold.
General Electric stock price is trying to snap the 13 losing sessions in a row it recorded in the monthly chart, while the price is currently trading slightly to the upside. The aggressive bearish rally started after the pullback on the 30.50 resistance level, driving the price towards the 12.70 low in the previous month. Moreover, the price is holding within the narrow Bollinger band in the daily timeframe, while it touched the upper boundary in the last few hours, failing to move higher.
Looking at momentum oscillators on the daily chart, they suggest further declines may be on the cards in the short-term. The RSI is near its neutral 50 line and is pointing downwards, detecting negative momentum. The stochastic oscillator is turning to the downside, moving towards a bearish cross within the %K and %D lines.
In case of further declines in the stock, immediate support may be found near the latest lows at 12.70, an area that also encapsulates the lower Bollinger band. A downside break of that zone would open the way to the next psychological level of 12.00.
On the flipside, if the bulls retake control with a break outside of the Bollinger band, this would likely determine the next trend direction and price advances may stall initially near the latest highs at 15.30. A potential upside violation of this level would raise the likelihood of more advances. In such a case, the 17.25 could act as a barrier to the upside, identified by the January 24.
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