Thanks to GE’s emergence in the aerospace sector it has again become a major player in the US multi-industry category.

And there may still be some growth in air travel in 2023 that will further boost revenue.

Another huge positive is GE Vernova, its renewable energy business. It will benefit from the Inflation Reduction Act.

All of this helped boost GE Q4 2022  sales growth to +11.2% when adjusted for foreign currency fluctuations.

On the other side of the coin Jim Chanos the infamous short seller came out this week and said he is short GE.

To be fair, GE is up 75% since the October lows so a lot of positives are priced in at this point. 

Today we’ll take a closer look at the technical picture for a tradeable idea. 

GE-Whiz

So, have the easy gains in GE been made while additional upside is limited?

In the short-term, yes.

Let’s go to the charts for some perspective.

The weekly chart below shows the major resistance up above between 85-90. It would make sense for GE to settle in and test key levels below.

 

I would be a longer-term buyer of GE between the $68-$72.

The bottom line is, Larry Culp is engineering a successful turnaround of GE. 

Longer-term, GE holds pricing advantages and possesses valuable assets that come from its large base of industrial equipment and great technology.

Money Moves

If you are a short-term trader, consider fading a rally to $90 via selling call spreads or buying put spreads. That’s pretty simple.

If you are a longer-term investor, be patient and look to accumulate shares between that $68-$72.

Live and Trade With Passion My Friend,

Griff