Resistance Above for General Electric?

Published on Thursday, 29 July 2010 06:24 Written by Christopher Lynn

New York, July 29th (TradersHuddle.com) - Shares of General Electric Co. (NYSE:GE) closed the trading session at $16.18 near its 50 day and 200 day moving averages currently set at $15.5371 and $16.3666 respectively. General Electric's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

General Electric Company 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 price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter General Electric with a small position and wait for the stock to break out above the 200 day moving average at $16.3666, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $15.5371 breaks it could mean further downside in the horizon for General Electric.