Boston, MA 09/18/2014 (wallstreetpr) – General Electric Company (NYSE:GE) (Closed: 26.27, Up: 0.23%) will trade ex-dividend from today as the shareholders till yesterday will receive a dividend of 22 cents. The stock jumped from $25.35 to $26.40 in the previous three sessions and may digest the ex-dividend price correction sooner than expected with the short term trend looking stronger compared to the last one month’s activity. The volume at 29.5 million has a lot of room to increase against the average volume of 28.5 million. The candle formed was a Turning Top, with a long shadow on the downside, but primarily suggesting a lot of indecision in the short term.
From the August low of $24.75, it rallied by about 7% to $26.45 and entered a corrective mode since then. Two possibilities are seen now. One – the correction has ended at the 15th September low of $25.75 and the next phase of upside have begun. The other possibility would be that the first leg of the correction ended at $25.75 and second leg ended at yesterday’s high of $26.40. The last leg would unfold now and end around $25.50. The price action in these last two sessions of the week should help to decide the proper course of action on an immediate term.
The longer term chart gives a clearer picture from the perspective of the actual trend, which is sideways. The rally from the 2012 November bottom of $18.60 made a top at $27.39 in December 2013 before correcting to $23.71. All the months of 2014 have been spent in a contracting sideways pattern with lower highs and higher lows forming a structure looking like a Triangle till now. As long as $27 on the upside and $24.54 on the downside is not crossed, the Triangle creation will be in force and considering the time it is taking, it can be safely said, that whenever this Triangle is resolved, a very strong rally would be a natural outcome.
