Here is an updated monthly chart of General Electric. The last time we looked at GE was a few months back when we surmised that the $23 level likely represented a big battleground for the stock. After all, that level provided firm support back in 1998 during LTCM, as well as at the lows of the 2002-3 bear market.
The issue now becomes whether General Electric can leave this level in the dust, especially with today’s promising action.
The stock has already been basing here since last September 2012. So, it might be reasonable to say we have spent our time and paid our dues here. I would continue to watch $23 as a reference point on the stock, either way.
Also note that if this is truly it for the $23 test, the stock could easily lurch up to $32 quicker than most people would expect.
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Thank you, Chess, you’re the best.