Long

GE

Updated

I'm playing with this chart in an effort to identify a new pattern for the trend reversal I believe we're about to see with GE. I'm watching GE on the monthly as this one is a long term play but I'm bullish on GE for the next 5 years. There is a possibility that GE could lose 25% of its value and wind up in the ~$8 range or even lose 50% of it's value winding up in the ~$6 price range but if you're in this one as a long term play I'd look to ~$19 (50% increase for current price of ~$12) as the next resistance and possible exit.

GE's RSI is in territories it's not seen for a decade(which was the crash of 08) but even before then GE has always remained above 30RSI with the exception of 1 other time back in 74'; although I'd be looking for a little resistance when RSI approaches 46. Either way, I'm bullish on GE. Also, according to GE's CEO I think GE has some projects lined up that will position them to see good gains in the next couple of years.

As always, let me know what you think. *This is not financial advice.

Note

Although experienced a dip after I posted this, it seems my predictions were fairly accurate here.

Again, if you're in it for the long haul and you're looking to buy I think you would be okay to enter here as the RSI has now moved into normal trading range. GE hasn't made anyone rich quick except for those who bought in the few years prior to the dotcom bubble and were lucky enough to see the signs to exit.

I'm still leery about GE overall, simply because it's been trading for 50 years now and lifecycles are a very important aspect to a company's survivability; and as far as GE's lifecycle is concerned it's experienced a 30yr uptrend, followed by a 20yr downtrend. It would be nice to see a new cycle re-emerge and see GE regain its foothold as a powerhouse in the industry.
But that will require GE to make some drastic changes to its strategic model and focus its efforts toward renewable energy. I think there is a huge gap that still needs to be filled in this area, as most residences still lack renewable energy generating utilities. Every damn household should have solar panels or a wind turbine or combination of both - it's almost 2020 for crying out loud.

I've got an idea that would propel into the new age and secure their place as THE industry front-runner, but it's going to cost them. I'd love to share it with them too, so if you're an executive at GE and you're reading this - contact me. You won't regret it.

DustinDamron

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