NEW LOW OBSERVER

History:

• On January 21 2018, when General Electric (GE) was trading around $16, we said, “the speed at which the current decline is taking place indicates that sentiment will push the stock to the $5.27 price and the elimination from the Dow Jones Industrial Average is eminent.”
• On December 12, 2018, General Electric (GE) achieved a closing low of $6.45, 22% above our estimated downside target.
• On January 1, 2019, when General Electric was trading around $7.25, we said, “…now is the time to consider the upside resistance targets.  The above chart lays bare the expectations for an upside move.” We also said, “The year 2019 could be forgiving to GE…” This was 12.40% above the December 12, 2018 low.
• On November 21, 2019, the closing price of General Electric stood at $11.59 or +59.86% above the January 1, 2019 level. This was 84.44% of the entire run from the December 12, 2018 closing low.

Revised GE Upside Targets

After demonstrating a history of consistency, in terms of the general trend in the stock price of General Electric, we must revise the Speed Resistance Lines that were issued in January 1, 2019 to more accurately reflect the changes that have occurred in the last 11 months.

The upside resistance targets are as follows:

• $19.05 (conservative target)
• $23.33 (mid-range target)
• $27.48 (extreme target)

It would be a major coup for the price of General Electric to exceed the conservative upside resistance target at $19.05.  For now, we will reiterate that almost all stocks achieve the conservative targets through either the passage of time or increase/decrease in price.

As was said in January 2019, “GE could achieve all of the designated upside resistance targets and still be in a declining trend.”