GE - The Key Resistance/Support Points

I expect GE to consolidate over the next few days at least until there is some clarification about its financial arm on Monday.

If the stock price falls below 7.40 then it might re-test the lows i.e. 6.60. My guess is that it will likely consolidate at 7.40 - 8.40 band. If it passes 9.30 then the next critical levels are 9.80.

The critical levels for GE are,
9.80
9.30
8.40
7.40
6.60

GE - Taking a position

I put my money where my mouth is i.e. I bought some shares of GE.

My reasoning were quite simple (a) when the market was down 4% and financials down 10% GE held up well (b) on the candlestick chart on the previous day it showed a "hammer" on a "big volume" (c) there was strong long-term resistance at $6.60-$6.65. My strategy was that the day's trade will confirm my intuition that GE stock will hold up no matter happened to the market. So I waited until end of day to put in the trade although my price-point was at the high end of day's range.

So what now? Well payroll numbers came out this morning - it was bad but the future is off it's pre-market lows. Moreover for S&P500, there is a strong resistance at 680. GE is up in the market but I have to be watchful for key trading point.

RESISTANCE
$7.20 (very strong)
$6.85 (very strong)

SUPPORT
$6.60 (very strong)
$6.45
$6.20 (strong)

Then I heard something TheStreet.com.

GE - Swing Traders' Dream?

GE fell below $5 at one point today on a big volume but closed at $6.69. Although there are stories about investors betting on GE's fall with massive volume around $5-put there is a big chance that it will rebound for at least couple of days from the current low. GE is forming a typical reversal pattern on candlestick chart at a long-term support level but this has to be confirmed by moves over the next few days.

On a long-term chart, there are resistance at $6.65, $7.50 and a big one at $9.20. On the negative side, there is support at $5.70. If that gets broken then we are looking at $4.20.

Lets see how this plays out.