Picture Perfect Setup

The chart below is exactly the perfect set up for me.

GE first gave me himt it was turning down in late dec. TSI and MACD signaled sell. Both in overbought bullish territory and price is above 50 sma. This is not short signal…it is a sign the bull trend is slowing and you might want to take some off the table and look to imploy that money in better opportunities.

I got the offical call first week of January…5 ema crossed and closed below the 20 sma. Bullish trend turned bearish, but still trading above the 50 sma. Price fell 2 more $2.

The RSI on the sell side signaled oversold (-70). That is your first signal that the downside move is losing strength. Price moved sidways for couple weeks before breaking out to the upside and closing above the 20 sma. Even though the 5 ema hadn’t crossed the 20 sma we give the doubt to price.

Priced turned up closing above the 2o sma and it is confirmed by TSI and MACD that is a bullish trend reversal. 3 of the 5 checklist with price trump. 5 trading days later all 5 check list are signaling BUY.

Long GE a lot of shares…..bonus 3.15% dividend yield.

ge22017

The only hurdle left is to get price above the 50 sma.

GP

 

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