GE is ready to light up the market

• Posted by Greg Harmon
• on February 29th, 2016

General Electric ($GE) is 123 years old, or just over 30 if born on Leap Day. Back then General Electric actually meant something. A guy you may have heard of, Thomas Edison (that guy who invented electricity, well you know what I mean) had a hand in the company’s formation. It was one of the original 12 Dow Jones Industrial companies and the only one still there. When you think of light bulbs and GE it brings you to about 6 miles down the street from me to their NELA Park Lighting Headquarters above (incidentally my college roommate’s father ran the Lighting business at that time).

What does any of this have to do with anything? This is an old company with a rich history. Investments in these types of companies are supposed to be reserved for for your parents and grandparents who are looking for dividend income. But this stock looks ready to make a big move to the upside.

This stock was drifting until it was pulled down with the August market dump. But like a Phoenix it rose from the ashes over the last quarter of the year. The pullback with the market to start 2016 resulted in a near 61.8% retracement of that last leg higher. Now it sits at resistance at 29.50.

The momentum indicators are not full on bullish but rising and the Bollinger Bands® are turning higher. These support an upside move and would likely get more strongly bullish if it occurs. A break over 29.50 would give a target of 34.20 on a Measured Move or AB=CD. That is a 15% move. Not bad for someone 123 years old.

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