BOSTON – Shares of industrial conglomerate General Electric Co. (NYSE: GE) had a rollercoaster session on Thursday, ultimately closing with a strong gain of 1.40%. The stock ended the day at
3.51, but the final price tells only half the story of a volatile day.
The session began with solid momentum, opening at $251.85 and surging throughout the morning. By midday, the stock had reached an impressive new 52-week high of $260.55. However, this peak proved to be a powerful point of resistance. In the afternoon, profit-takers emerged, pushing the stock down significantly from its highs to find a base around the $254 level, where it consolidated into the close.
After-hours trading was essentially flat, with the stock moving negligibly to $254.50, indicating a pause in the action as investors digest the day’s dramatic price swing.
Will the Market Go Up or Down on Monday?
The day’s trading action presents compelling arguments for both a move up and a move down, setting up a critical start to the new week.
The Bullish Case (Market Up): The primary bullish signal is the achievement of a new 52-week high. This demonstrates powerful underlying momentum and investor confidence in the company. Despite the afternoon fade, the stock still posted a very strong daily gain and closed well above its previous close of $251.00. If buyers see the pullback as a new entry opportunity, the stock could make another attempt to breach the $260 resistance level.
The Bearish Case (Market Down): The bearish argument is equally strong. A stock that hits a major new high and then sells off sharply to close well below it (in this case, about $6 off its peak) can be a sign of exhaustion. This pattern, sometimes called a “failed breakout,” suggests that sellers at the higher levels are more powerful than the buyers. The selling pressure dominated the entire second half of the trading day, and if that sentiment carries over, the stock could test lower support levels on Monday.
Monday’s open is shaping up to be a battle between bulls, encouraged by the new 52-week high, and bears, emboldened by the sharp rejection from that peak. The direction will likely be determined by which force asserts control early in the session.
Investors should watch the
254 area has now established itself as short-term support. A break below this level could signal that the afternoon sell-off has more room to run.
