One Trade Every Trader Should Be Ready To Make
General Electric (GE) is not a stock we often look at, but due to the setup it’s presenting us, it could be a trade worth watching as we draw near to the end of this week’s trading session. On this trade, like many of the trade setups we look at, there are two key levels to be on the lookout for.
The first is near 110, which is acting as our support for this setup and the second, 116 or our resistance level. The trades off these levels are simple. If we are able to breakthrough this resistance level, then we should see a push higher.
On the other hand, if we were to break down this support, then we could see quite the fall all the way down to 105 or even possibly 100. As always, watching price action and candle formation at either of these levels is going to give away exactly what the rest of the market is thinking.
Wicks at either level could indicate where buyers and sellers are stepping in to prop up or take down price, let the market tell you what comes next. Reminder, do not trade off of anticipation on what you think the market will do, rather use multiple confirmations like volume and price action to indicate.
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