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Charts Show Blue Chip GE Poised to Make Traders More Green

Posted
2/8/2011 7:01:00 PM
By: Sam Collins
Referenced Stocks:GE

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

On January 25 at $20 the Trade of the Day noted that for the first time in two years GE broke above $20 after announcing quarterly earnings that were better than expected by 4 cents per share.

As a result, Standard & Poor's increased their 12-month target from $20 to $24 with a 4-Star Buy rating.

GE pays an annual dividend of $0.56 providing a dividend yield of 2.8%, but talk persists of a pending dividend increase this year.

As I noted on January 25, technically, the stock has broken from a double-top on a breakaway gap signaling that a major move is under way.

ge technical analysis

The short-term trading objective is revised to $25 in GE, up from $23 a few weeks ago, due to the pickup in volume and recent favorable comments from GE officials on their outlook for 2011.

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