The market is still trying to digest the uncertainty surrounding the politics that are ramping up in Washington, but the technical charts are seeing through all the noise to identify some changing trends. Among them are Alibaba Group Holding Ltd (NYSE:BABA), Cree, Inc. (NASDAQ:CREE) and General Electric Company (NYSE:GE).
All three make the list of three big stock charts this morning given the position they are in for potential breakouts (or breakdowns in one case).
Alibaba Group Holding Ltd (BABA)
Shares of Alibaba are getting ready to make a run at their resistance again. BABA shares are rallying this Friday as they head towards what has been a nemesis of resistance: $110.
The stock gave a quick pullback this week to successfully test $105, a level that serves as both resistance and as a consolidation point for BABA shares.
Now, with a little rest, we’re expecting to see the online retailer split through $100 as momentum grows.
This morning’s move also cracks through the top Bollinger Band, following a brief stint above this volatility indicator earlier this week. The move suggests that we’re about to experience some upside volatility on the stock.
The last similar break into this positive volatility trend was in January, ahead of a move from $93 to $105.
Cree, Inc. (CREE)
Another stock with growing breakout potential is Cree Inc. This semiconductor stock (better known for their LED lighting) has spent the first few weeks building a squeeze play between key support and resistance levels.
The support for CREE stock comes from the 100- and 200-day moving averages, both of which are trading around the $26-level. This level has been very supportive of shares since they broke above it in December.
Resistance for CREE sits at $27, the site of the stock’s 50-day moving average. This trendline has been trailing sideways with no directional bias, suggesting a neutral outlook for the shares from a technical perspective.
According to our momentum indicators, CREE is likely to see a break above $27, which should serve as a bullish catalyst for a technical rally.
General Electric Company (GE)
General Electric shares will represent the not-so-good stock for friday’s three big stock charts. GE stock has been caught in an intermediate-term bearish trend that appears to be worsening.
Two weeks ago, General Electric shares saw their 50-day moving average cross under their 100- and 200-day trendlines within a few days of each other. This pattern suggests that GE stock’s intermediate-term to longer-term outlook is decaying.
General Electric shares now sit at $29.50, which has been clear chart support for the stock in 2017. The post-earnings sell-off in January tested this price point multiple times before GE shares were able to rally back to resistance in the aforementioned 100- and 200-day trendlines.
A break below $29.50 is going to set a target for General Electric shares of $28, according to our technical assessment.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.