General Electric Pushes Higher Following Earnings: What's Next?

General Electric Company GE shares are trading higher Tuesday after the company reported better-than-expected third-quarter financial results.

Earnings per share improved to $0.57 from $0.38, beating the analyst estimate of $0.43. Revenue year-over-year came in at $18.43 billion, missing the estimate of $19.25 billion.

General Electric closed up 1.99% at $107.44.

See Also: General Electric Stock Gains After Mixed Q3 Results, Raises FY21 Adjusted EPS Outlook

General Electric Daily Chart Analysis

• Shares look to be trading in what technical traders call an ascending triangle pattern, the stock saw a jump closer to resistance Tuesday, but later started fading back lower.
• The higher low trendline may continue to hold as support in the future for the stock. The $115 level has been acting as a place of resistance for a time. These levels may continue to hold until one of them is broken.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is in a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 60. This increase in buying pressure pushed the RSI above the middle line, meaning there is now more buying pressure in the stock than there is selling pressure.

What’s Next For General Electric?

Bulls are looking to see the stock continue to hold above the higher low trendline. Bulls are then hoping to see a break over the $115 resistance level with a period of consolidation above it for possible further moves higher in the future.

Bears are looking to see the stock fall below the higher low trendline. If the stock can hold below this trendline for a time, then the stock may see a strong bearish push and possibly a long-term trend change.

Photo: Chuck Miller via Flickr