There were a couple of big moves in stocks today and let’s start with GE General Electric. It reported an increase in profits and better-than-expected earnings although its results in the industrial sector were probably below expectations and the company warned a little bit about what was coming but take a look at this.
It’s been a very strong performer this year leader on the Dow and it came back into this support area that used to be resistance, now it is support. The thing is it didn’t break below the support area so the uptrend officially still intact. You can see this line here the bottom and possibly want to call it the triangle pattern also still intact so GE with a good performance relative the S&P 500 and certainly good on bound volume. So this one is an example of a stock that might have come back into a buying opportunity. As you can see this morning the open was weaker and it’s trading to the upper end of the range today. It is still down quite a bit but it’s near the upper end of the range so this one looks okay and possibly little cheaper than before.
Let’s take a look at another one – this is Southwest Airlines – with an entirely different chart – just up and down up and down and mostly sideways. Unlike GE, Southwest is below its major moving averages – the 50-day and 200-day – with big decline yesterday even though it had pretty good earnings, the warning for what was coming was pretty bad.
You can see the technicals leading into that – relative to the S&P 500 clearly lagging. On-Bounce volume clearly falling so just based on technicals and forgetting about the actual gaps on these two stocks, basic technicals leading up into them are totally different. Southwest, and probably all the airlines, maybe not something to look at. GE, on the other hand, maybe a buying opportunity. https://www.youtube.com/watch?v=W2KuIDHnneA
Submitted July 22, 2016 at 12:55PM by TechnicianApp http://ift.tt/2aiMaEx
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