Approaching Resistance - General Electric

Published on Saturday, 04 February 2012 16:12 Written by Christian Paolinetti

New York, February 4th (TradersHuddle.com) - Shares of General Electric Co. (NYSE:GE) are trading very close to calculated resistance at $19.05 with the current price action closing at just $19.02 placing the stock near levels that make it difficult to buy.

General Electric Company (NYSE:GE) is a diversified technology, media, and financial services company. The diversified corporation offers products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content, and industrial products. General Electric conducts operations globally and its consider a belweather of the U.S. economy as it participates in so many segments of the economy. GE was founded in 1892 and is based in Fairfield, Connecticut.

General Electric's current stock range is defined by current calculated support defined at $14.68 and by the resistance level at $19.05, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for General Electric, as the stock is well above support, however, as the stock pulls back towards $14.68 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $19.05 then traders will get an opportunity to enter General Electric stock by establishing a position as the stock moves to a higher range.