Current trend

Last week, shares of General Electric Co., an American diversified corporation, began to adjust downwards against the long-term downtrend: quotes turned around from the level of 193.75 (Murrey level [7/8]) and are currently consolidated below 181.25 (Murrey level [5/8]). The key level for the "bears" is the central line of the Murrey trading range of 175.00 (Murrey level [4/8]), consolidating below which will ensure the development of a decline towards the targets of 162.50 (Murrey level [2/8]) and 156.25 (Murrey level [1/8]). With an breakout of the 187.50 mark (Murrey level [6/8]), supported by the central line of Bollinger Bands, it will be possible to resume the upward dynamics of the trading instrument towards the targets of 193.75 (Murrey level [7/8]), 200.00 (Murrey level [8/8]), 206.25 (Murrey level [ 1/8]).

Technical indicators do not give a clear signal: Bollinger Bands are reversing down, MACD is preparing to move into the negative zone, but Stochastic has approached the oversold zone and may reverse up.

Support and resistance

Resistance levels: 187.50, 193.75, 200.00, 206.25.

Support levels: 175.00, 162.50, 156.25.

Trading tips

Long positions can be opened above the 187.50 mark with targets of 193.75, 200.00, 206.25 and a stop-loss around 182.65. Implementation period: 5–7 days.

Short positions should be opened below the level of 175.00 with targets of 162.50, 156.25 and a stop-loss around 184.60.