Several days ago a trader mentioned he was interested in GE and that he thought it might be setting up for a good long entry. We thought it had farther to go to reach a good support zone and said as much. This is the chart we sent the trader…
The yellow horizontal line was resistance which price gapped through in mid October. The same line then became the top of the support zone between $23 and $25. We thought a test of that support zone would provide the best structural entry.
With the selloff of the last few days, an interesting setup has formed. We are testing the top of the support zone.
The green arrow shows a potential entry trigger bar while the red arrow shows where to place a stop.
As always, mind your risk.