General Electric's Stock Is Tightening For A Move

General Electric Co. GE announced on Wednesday its partnership with Ares Management Corporation ARES has been updated to include a 302MW agreement with Lincoln Land Wind. The deal, which will be completed by year-end 2021, includes 107 GE 2.82-127 turbines and a 20-year full-service agreement.

Over the past 12 months, General Electric and Ares Management have announced over 800MW together as the companies work to transition toward sustainable and renewable energy.

Also on Wednesday, Barclays raised its price target on General Electric to $16 and maintained an overweight rating.

General Electric’s stock had a 136% meteoric rise between October 2020 and March 2021 and has since traded sideways in consolidation. General Electric’s daily trading range is tightening, however, and could be getting ready for another big move.

See Also: Why This GE Analyst Is Raising Their Earnings, Cash Flow Forecasts

The GE Chart: Over the course of the last two months, General Electric’s daily trading range has become smaller and on Thursday GE only fluctuated 19 cents – between $12.92 and $13.11. GE has been trading in a sideways channel above a support level at $12.90 and below a resistance level at $13.79

GE's stock is being held down by both the eight-day exponential moving average (EMA) and the 21-day EMA. The eight-day EMA is also trending slightly below the 21-day EMA which is bearish. GE is trading well above the 200-day simple moving average, however, which indicates overall sentiment in the stock is bullish.

Bulls want to see GE's stock regain the eight-day and 21-day EMAs as support. If GE can pop over its EMAs, it has room to move back up to the $13.80 level. If it could regain that level as support it could move toward the $15 mark which is resistance from back in 2018.

See also: How to Buy General Electric (GE) Stock

Bears want to see the eight-day and 21-day EMAs continue to push GE's stock down until it loses support at $12.90. If the stock falls below that it could fall to $12.23 before finding another support level.

GE Price Action: Shares of GE were trading up 1% at $13.19.

(Photo: Momoneymoproblemz via Wiki Commons)