Laboured would best describe progress for General Electric (NYSE:GE) as the once stellar stock continues to remain rangebound, but for long term investors, patience is the watchword for those looking for a buy and hold and a possible return to the heady heights of $36 per share and beyond.
The technical picture for this stock is dominated by key levels, and none more so than the very well developed resistance at $12.50 per share, and denoted with the blue dashed line of the accumulation and distribution indicator. The thicker the line the deeper the resistance and confirms a level which is likely to become significant to any longer-term progress higher for the stock. Meantime GE continues to trade around the volume point of control which is neatly balanced at $10 per share and shown with the yellow dashed line. This is the fulcrum for this stock and defines the heaviest concentration of transacted volume on the chart. Ahead, between $11 and $12 per share we have light volume which should make progress here more ‘rapid’ before approaching the $12.50 resistance area. Note also the trend monitor indicator has recently reverted to blue, signaling a pick up in the bullish tone for GE. So once any break away from the VPOC begins, provided it is associated with good volume, we should see a firm move from the current price up towards $12.0. If this level is taken out we will then have an excellent platform of support in place for a sustained move higher and a return to happier times for those GE investors prepared to be patient as the accumulation phase continues.