Bottom formation with signs of strong hand absorption
GE stock price has been in the free fall style crashing down since October break down of the 12 dollar mark.
The falling has been exacerbated by the back drop of weak general market. As the panic sets in, the sharks moved in.
The volume expanded at the low while the price is making a flat correction below 8 dollar mark. My suspicions of strong hand absorption has been confirmed by the price action of the first trading day of the year 2019 that
It has broken decisively above the 8 dollar mark.
I believe that the absorption stage is likely to be finished and a retest of the absorption range is very likely in the next few days.
At this moment, the risk reward does not favours who he/she chases the prices as the stock is traded quite close to the 9 dollar major resistance level and bearish gap.
If it trades back down from 9 and retest the absorption range, then it would be a much better long trade.
If it would take out the resistance at 9 dollar mark with strong momentum, a long entry can be considered after seeing a bull flag formation appeared in the chart.
The falling has been exacerbated by the back drop of weak general market. As the panic sets in, the sharks moved in.
The volume expanded at the low while the price is making a flat correction below 8 dollar mark. My suspicions of strong hand absorption has been confirmed by the price action of the first trading day of the year 2019 that
It has broken decisively above the 8 dollar mark.
I believe that the absorption stage is likely to be finished and a retest of the absorption range is very likely in the next few days.
At this moment, the risk reward does not favours who he/she chases the prices as the stock is traded quite close to the 9 dollar major resistance level and bearish gap.
If it trades back down from 9 and retest the absorption range, then it would be a much better long trade.
If it would take out the resistance at 9 dollar mark with strong momentum, a long entry can be considered after seeing a bull flag formation appeared in the chart.
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