Friday, February 11, 2011

Charts Show Blue Chip GE Poised to Make Traders More Green

General Electric (NYSE: GE)This bluest of the blue-chip conglomerates sells products ranging from aircraft engines to consumer appliances, railroad locomotives, and medical equipment.

On January 25 at $20 the Trade of the Day noted that for the first time in two years GE broke above $20 after announcing quarterly earnings that were better than expected by 4 cents per share.

As a result, Standard & Poor’s increased their 12-month target from $20 to $24 with a 4-Star Buy rating.

GE pays an annual dividend of $0.56 providing a dividend yield of 2.8%, but talk persists of a pending dividend increase this year.

As I noted on January 25, technically, the stock has broken from a double-top on a breakaway gap signaling that a major move is under way.

ge technical analysis

The short-term trading objective is revised to $25 in GE, up from $23 a few weeks ago, due to the pickup in volume and recent favorable comments from GE officials on their outlook for 2011.

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