General Electric (NYSE: GE) Further to Fall Says Market Timer Frank Kollar
October 21, 2008 (FinancialWire) (By Frank Kollar)
There are two potential scenarios for shares of General Electric (NYSE: GE). The first is that a bottom is in around $19.00 a share (closing price). The second is quite bearish.
GE is now well below its 2002 bear market lows. Typically when a stock breaks below a long term support level, it reaches the next support level before a new bottom can be made. The next support level is all the way down at $16.50, which is the 127.2% retracement of the entire 2002-2007 advance.
If this next support is reached, GE has another 18% on the downside still ahead. If support holds at $19.00 a share though, that forecast would obviously be void.
Bullish positions with a sell stop just below $19.00 would be a low risk way to trade a possible reversal here.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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