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Major Move in GE Under Way

Signaled by a breakaway gap from a double-top

   

General Electric (NYSE: GE) — This bluest of blue-chip stocks sells products ranging from aircraft engines to consumer appliances to railroad locomotives and medical equipment.

On Friday, GE broke above $20 for the first time in two years after announcing quarterly earnings that were better than expected by 4 cents per share. Standard & Poor’s increased their 12-month target from $20 to $24 with a “four-star buy” rating.

The company pays an annual dividend of 56 cents providing a yield of 2.8%, but talk persists of a pending dividend increase this year.

Technically, the stock has broken from a double-top on a breakaway gap signaling that a major move is under way. GE is one of my top stock picks for both intermediate- and long-term investors. Our short-term trading objective is $23.

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dmo chart key11 Major Move in GE Under Way

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.


Article printed from InvestorPlace Media, http://investorplace.com/2011/01/trade-of-the-day-general-electric-ge/.

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