Chart Review: GE Breaks Out

I was surprised to see such a promising stock chart from General Electric (GE). The S&P 500 is struggling to overcome overhead resistance, so I would have assumed the same behavior out of an industrial, big cap like GE. Instead, a 23% rally off a successful retest of the 2011 lows, has punched General Electric over its 200DMA. Much of the rally during December has occurred with overbought stochastics, meaning that GE is rolling on a very strong uptrend.

General Electric breaks out
General Electric breaks out


Bulls should be very encouraged by this chart. I cannot say that GE is a direct indicator for the general stock market, but this action is promising. A few more similarly promising charts will build a strong case for bulls. I will be looking closely for them because I currently have a bearish outlook for the start of the new year.

Be careful out there!

Full disclosure: long GE

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