MIKE PAULENOFF'S ETF TRADING DIARY
Based on my pattern, cycle and RSI analysis, General Electric (NYSE: GE) appears poised to enter a new upleg that should propel the stock to 16.80-17.00 next and possibly to new recovery highs above 18.00. In particular, the pattern carved out since the Nov 4 low at 14.15 has the right look of the initial upmove of a new upleg followed by a sideways rest-digestion period (11/16-11/24), followed by today’s upside pivot off of 15.92. If my work proves correct, then this morning GE ended its sideways digestion period and entered a secondary upmove within the new upleg that started after the Nov 4 low. When the very positive cyclical confluence is factored into the otherwise positive technical situation, the potential for a very powerful upmove is evident.
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