General Electric’s Rally Hits a Wall at 52-Week High, Sharp Reversal Signals Caution for Monday

BOSTON, MA – General Electric Co. (NYSE: GE) delivered a strong headline gain on Thursday, but a dramatic intraday reversal after touching its 52-week high has flashed a significant warning sign to investors, suggesting a bearish tone for the start of trading next week.

The industrial giant closed the session at

3.51 (1.40%). This positive result, however, conceals a turbulent session that saw bullish euphoria completely evaporate in the afternoon.

Trading began with immense strength. GE shares surged through the morning, climbing relentlessly to hit a session high of $260.55. This peak is critically important as it precisely matches the stock’s 52-week high, a major technical and psychological resistance level.

Upon reaching this peak, the rally came to an abrupt halt. Sellers emerged in force, initiating a steep sell-off that lasted for the entire second half of the trading day. The stock gave back nearly two-thirds of its impressive intraday gains before finding a floor and consolidating into the close. The after-hours session was flat, indicating a market pausing after a volatile day.

Outlook for Monday:

The rejection from a key resistance level followed by a sustained sell-off is a classic bearish pattern. Despite the positive close, the momentum is decidedly negative. Consequently, the market for General Electric is poised to go down on Monday.

Key factors supporting this outlook:

• Rejection at Resistance: Hitting a 52-week high and immediately selling off is a powerful signal that sellers are defending that price level aggressively. It shows that buying power was insufficient to break through to new highs.

• Fading Momentum: The story of the day was not the gain, but the fade. The control of the market was clearly handed from the bulls to the bears around midday, and this downward pressure is likely to spill over into Monday’s session.

• Profit-Taking Signal: The reversal suggests that investors who have enjoyed GE’s recent run-up used the touch of the 52-week high as a prime opportunity to lock in profits, adding to the selling pressure.

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While Thursday’s closing price looks strong on the surface, the underlying price action tells a story of lost momentum and a victory for the sellers. Investors should anticipate this negative sentiment to continue on Monday, with the potential for the stock to re-test its intraday low of $251.78. The battle at the $260.55 high was lost by the bulls, and the bears now appear to have the upper hand.