Shares of General Electric (NYSE:GE) continue to hold inside a tight triangle chart pattern. Note the chart below to see the triangle. This pattern signals a potential breakout on any move above $13.25. The upside target is $15.30 and could happen within days of the breakout. Analysts continue to be overly bearish on General Electric, which tells me the stock price has already factored in most, if not all of the bad news. Remember, stock prices adjust quickly to current 'views'. So with a majority of analysts already highly negative, investors have sold the stock to meet those expectations. This puts General Electric in a unique spot to come out with an average quarter next Friday and see a very positive reaction in shares.
Optimistic CEO
In addition, the General Electric CEO was on CNBC Thursday talking about how the company has to put up or shut up. In other words, it needs to prove it can rock it in the next year, starting with the quarterly report on April 20. In my humble opinion, the CEO would not say that unless he knew the quarter was going to be better than expected. I am long the stock and loving the upside potential.
