General Electric (GE) continues to hover just above a critical long-term support plateau between 23.30 and 22.00, which if violated and sustained could trigger a powerful long-side liquidation that drives prices to 18.00-17.00 next. What is very worrisome is the sharply negative angle of descent of the 40-week moving average, which is similar to the price-moving average juxtaposition that emerged on the downside after the peak at 60.50 in August 2000 that pressed the stock to 21.40 in October 2002. If a decline of similar magnitude is in progress now, GE must not break and sustain beneath 21.65 to avert a plunge towards the next intermediate-term swing target of 15.00.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.