"There's a strong chance we see an earnings surge on this stock." Nate Bear, Lead Technical Tactician, Monument Traders Alliance I start every Monday looking at the best trade setups I can find. And yesterday I discovered that GE Aerospace (GE) fit my criteria for a top stock to watch. There are several reasons I like GE this week. For one, the company reported strong earnings last week. It comfortably beat at $1.20 a share, and now its stock is soaring 62% vs. a year earlier. But the truth is… Other stocks on my watchlist also reported strong earnings. Yet I still chose GE over those stocks for a few other reasons. For one, it's already up near all-time highs. Second, it has a beautiful daily squeeze that was firing long yesterday. Lastly, it has a clear pattern that shows it's consolidating near those highs. Normally when I see an earnings beat like this, I like to look at the company's chart for a pullback or rest period before a potential move back upward. But as you'll see in the chart below, GE already had its rest or "pullback" period. Take a close look at the chart. You'll see back in January that GE reported earnings (that little yellow dot illustrates earnings day.) Next, you'll see that first pink line after the yellow dot showing the post earnings surge. The stock was surging upward from early 2024 all the way until mid April. Then, you'll see it basically went nowhere from late April all the way until now. This happened when the company wasn't reporting earnings. |
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