General Electric - GE - close 17.23 change -0.33 stop 16.19

Company Description:
General Electric Company (GE) is a diversified technology, media and financial services company. The Company’s products and services include aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content and industrial products. The Company serves customers in more than 100 countries. The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, NBC Universal (NBCU), Capital Finance and Consumer & Industrial. (source: company press release or website)

Target(s): 18.25
Key Support Areas: 17.00, 16.50
Key Resistance Areas: 17.85
Time Frame: Several weeks

Why We Like It:
GE has pulled back to a key support level of $17.00 dating back to September 2008 and I suggest readers take advantage of an ensuing bounce. GE also has support all the way down to $16.50. The stock is converging with an upward trend line from Novembers 2009 and the aforementioned support levels. These areas give us a good reference to place a stop to limit risk. There is no doubt GE's chart looks terrible but most stock charts do, and I'm viewing the pullback as opportunity to enter a quality name that may catch a bid as investors flee from more speculative names. Shares are lower in the after hours and futures are also weak. I'm eyeing two areas as a potential entry: $17.00 or $16.50 depending on the price action on Wednesday. Our time frame is a couple of weeks and our stop $16.19 which is below the support levels listed above.

Suggested Position: Long GE Stock at current levels.

Annotated Chart:

Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 88 million
Listed on 5/18/10, 2010