As GE Aerospace Breaks Out, Our Price Target Is a Nice Round Number
Here's how we would play the rally following the company's latest earnings.
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Tuesday morning GE Aerospace GE announced their latest quarterly results and the company beat bottom-line estimates and raised their 2024 outlook. Shares of GE have taken flight so let's check out the charts and indicators.
In the daily bar chart of GE, below, I can see that the shares broke out on the upside from a consolidation pattern. Trading volume decreased over the past four months and that is typical for continuation or consolidation patterns. Traders tend to go with the action and sideways movement is not as exciting as strong upside movement.
The On-Balance-Volume (OBV) line has moved higher since early November and confirms the price gains we have seen in the past year. The trend-following Moving Average Convergence Divergence (MACD) oscillator is turned upwards from the zero line for a fresh outright buy signal.
In the weekly Japanese candlestick chart of GE, below, I see a mostly positive picture. This week's candle has not been plotted yet but we can imagine a strong white candle if the rally keeps going.
The weekly OBV line started to turn up again in June and the slope of the 40-week line is bullish. The MACD oscillator is in a correction mode but is likely to turn higher again.
In this daily Point and Figure chart of GE, below, I can see the upside breakout at $172 and the $201 price target.
In this weekly Point and Figure chart of GE, below, I can see the same upside breakout as on the daily chart above. The $201 is the price target here, too.
Bottom-line strategy: Hopefully it is up and away for GE from here. Aggressive traders could buy a one or two-day shallow dip. Risk to $158 with $200 being our price target for now.
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