This is a quick summary of this GE idea, but GE started its strong downtrend on May '17 and it started to slow down in May '18. That's 1 year with a ~52% loss, in other words a very strong downtrend or crash.
It was a discussion I was having with a fellow member and I decided to share it as an idea rather than keep it to myself just because of how interesting the story has been so far. GE just broke down another support level at $12.60 after failing to hold its recovery rally up to the $15 mark. Right now the support break tells us that the stock is still weak, but a confirmation is needed to initiate another sequence of shorts if the downtrend resumes. If GE holds below its $14 level and makes a correction to the downside, it would be the time to short for me (this is a separate idea from what I will be doing with the portfolio growth challenge). As short as I am on this stock, it is only a waiting game until a further sign of weakness appears.
Let's give GE till about December to make up its mind.
We will see how this plays out. There is no prediction here, only reaction to the price action on the charts. Credit to @pherrman for bringing up the discussion.
It was a discussion I was having with a fellow member and I decided to share it as an idea rather than keep it to myself just because of how interesting the story has been so far. GE just broke down another support level at $12.60 after failing to hold its recovery rally up to the $15 mark. Right now the support break tells us that the stock is still weak, but a confirmation is needed to initiate another sequence of shorts if the downtrend resumes. If GE holds below its $14 level and makes a correction to the downside, it would be the time to short for me (this is a separate idea from what I will be doing with the portfolio growth challenge). As short as I am on this stock, it is only a waiting game until a further sign of weakness appears.
Let's give GE till about December to make up its mind.
We will see how this plays out. There is no prediction here, only reaction to the price action on the charts. Credit to @pherrman for bringing up the discussion.
