Trading General Electric

Published on Thursday, 02 September 2010 06:48 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of General Electric Co. (NYSE:GE) closed the trading session at $15.01 near its 50 day moving average currently set at $15.25. General Electric's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $14.31 and calculated resistance at $16.57. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by General Electric shares.

Traders should evaluate their trade if they want to establish a position on General Electric given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.