Here is a long-term view of major industrial firm, General Electric. On the monthly timeframe, below, note the significance of the $21 level–specifically $21.40-$21.80–dating back over a decade.
GE found major support here during the 2000-2002/3 bear market. However, in the 2007-2009 bear market all bets were off due to the ferocity of that delevergaing process, meaning price plunged through it like a knife through warm butter. In February 2011, GE (and many stocks of the same ilk) found major resistance here before trying to regroup for the past twenty months. Indeed, price has memory.
Currently, General Electric is attempting another breakout from this level. A move that convincingly captures $21 to the upside projects a target in the low-$30’s given the likely massive amount of pent-up demand above current levels. Short-term, while the stock has seen weakness since late-October, the overall uptrend since the summer remains intact.
I will have more on the industrials and much, much, more in my Weekly Strategy Session, set to be released tomorrow.
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Good to see you back in business Buddy. Hope all is well.
All the best, Chess. Hope things are getting better for your family and neighborhood.
Thanks, guys!