GE Possible Head and Shoulders Pattern

22 Mei

GE and the whole Aerospace and Defense industry have been relatively strong as of late. However we are entering into the Memorial Day weekend and the low volume that comes with it. On May 8th General Electric’s price pushed up to the $170 level, a level with a large amount of options interest. This $170 strike is considered the Call Wall and an area of large resistance. Since then prices have pulled back and are currently sitting on what I believe to be another big support level at $160, a large options strike. The $160.00 level also looks to be the “neckline” of a head and shoulders pattern. If this plays out, $149.92 would be the target area.
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