Current trend

The stocks of the American diversified corporation General Electric Co. have been growing since the beginning of this year: the price has passed through the Murray trading range from the bottom up and is now trying to consolidate above the reversal level of 106.25 (Murray level [6/8]). If successful, the upward trend will continue to the upper limit of the trading range of 112.50 (Murray level [8/8]) and further into the reversal zone to the level of 115.62 (Murray level [ 1/8]). The key for the "bears" is the 103.12 mark (Murray level [5/8]), supported by the lower line of the Bollinger Bands, the breakdown of which will allow for a fall to 100.00 (Murray level [4/8]) and 96.88 (Murray level [3/8]).

Technical indicators signal the continuation of the upward trend: the Bollinger Bands and the Stochastic are directed upwards, the MACD histogram increases in the positive zone.      

Support and resistance

Resistance levels: 112.50, 115.62.

Support levels: 103.12, 100.00, 96.88.

Trading tips

Long positions can be opened from 108.50 with targets at 112.50, 115.62 and stop-loss at around 106.20. Implementation period: 5-7 days.

Short positions may be opened below 103.12 with targets at 100.00, 96.88 and stop-loss at around 105.30.