General Electric Powering a Breakout

Using Trading Central’s technical event screener, our Head of North American Research, Gary Christie searched for U.S stocks with a large cap of at least 10 billion that had an interesting short term bullish technical pattern setup. He also used the tool to search for companies that have the top Columbine Capital Quant Ranking of 1. The Columbine Capital Quant Rank is a proprietary stock ranking methodology developed by Colorado-based Columbine Capital Services Inc. that ranks stocks on a scale of one to 10, with one being the most bullish and 10 being the most bearish.

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What we found

General Electric Co (GE: NYSE) Prices broke upward out of a trading range suggesting the stock is entering a new uptrend.

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The Upside Breakout pattern represents a trading range in which prices move sideways between two parallel horizontal lines. It’s often a pause or congestion area within an existing trend though sometimes the breakout results in a reversal to the prior trend. Either way, an upside breakout through the upper resistance line signals an end to the consolidation period and the start of an uptrend. Classic technical patterns are my favorite as they give us a measured move target once confirmed.

The technical screener also identified a Double Moving Average Crossover on a long term weekly chart with the 21 week moving average crossing above the 50-week moving average.

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A bullish event is generated when a faster moving average crosses above a slower moving average (21-bar MA crosses 50-bar, or 50-bar MA crosses 200-bar). In this state, the price is likely in an established uptrend. 

The investment ideas presented here are for information only.  They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

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