Thick Walls In GE
When you spot a good trend, look for new support or resistance levels to
firmly establish themselves. Focus on the ones with the "thickest
walls."
A good example of this simple technique is in GE
(
GE |
Quote |
Chart |
News |
PowerRating).
GE has been in a clear downtrend, and it has been ratcheting lower by
penetrating key levels of support. In early August, it sliced through support at
a key Fibonacci level, a gap window, and the old support that had been
established in late December/early January. That support is now resistance, so
we look for a range to develop here and observe how well GE tests the top of
that range.