Two month ago, I talked about how GE had bottomed and a close above the $8 level would confirm that bottom,
But before considering going long, the conviction for me would be if price can pull back to the daily demand at $6.75, then take out the $8 level, the bottom in GE would be more convincing at that point.
One month ago, I talked about since price closed above $8, the next two levels I was targeting was
daily supply at $10 and $11.50.
Both levels were hit, but now price is pulling back from the $11.50 daily supply.
GE has had one hell of a run the last since early December with the stock price increasing almost 100% in a little less than 3 months. Yesterday, I noticed unusual options activity in GE. The Smart Money bought a ton of the April 15 $9.50 and $9.00 put options.
Those strike prices represent a nearly 38.2% and 50% fib retracement.
The price action over the next several weeks should be interesting. If the Smart Money is going to be right on this one, they don't have a lot of time as the options expire in less than 45 days.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.