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Home / Business / GE's record increase following record orders at the Paris Air Show sets an optimistic technical note

GE's record increase following record orders at the Paris Air Show sets an optimistic technical note



General Electric Co. shares rallied on Thursday, preparing for a technical outburst that confirmed a bullish technical tone after the industry conglomerate announced its aviation division announced record orders at the Paris Air Show this week ,

The stock

GE, + 2.80%

increased 2.7% to over $ 10.60 in afternoon trade. This would mark the initial closing price of $ 10.50 despite several previous attempts since February 27.

The stock had reached or surpassed $ 1

0.50 in intraday trading nine months earlier, with highs ranging from $ 10.50 to $ 10.85, the highest since Feb 27, 27, 3 May at exactly $ 10.50.



FactSet, MarketWatch

According to GE Aviation, CFM International is a 50:50 joint venture between GE and Safran SA, based in France

SAF, + 0.57%

Safran Aircraft Engines announced orders totaling US $ 55 billion at this year's Paris Air Show, including more than 1,150 LEAP engines valued at 50.2 Billion USD at list prices.

"There was a demand for the CFM product but the airlines were waiting for us to do our best," said Bill Brown, a seasoned marketing executive at GE Aviation. "When we introduced the final design of the LEAP engine with the larger fan, the locks opened."

Do not miss : GE sees over $ 35 billion in engine / service contracts.

The outbreak of the stock confirms an optimistic technical environment as a current chart pattern with higher highs and higher lows is completed.

A central tenet of the Dow Theory, which has been relevant as a guide for technical analysts for more than a century, defines an upward trend as a pattern in which each rally ends above the peak of the previous rally, while each pullback is above the low of the previous rally previous decline ends; or basically a pattern of rising peaks and rising valleys.



FactSet, MarketWatch

Also supports the bullish case, the 50-day moving averages (DMA) of the stock, which many see as a clue to the short-term trend over the 200-DMA, which is a dividing line between longer-term Uptrend and Downtrend is considered to achieve a bullish "golden cross" pattern on June 7th. This suggests that the rally of the stock has fallen from just a a low against the December 2018 low, a major boost to a long-term uptrend.



FactSet, MarketWatch

The last time the 50-DMA was above the 200-DMA was March 6, 2017, while the last Golden Cross appeared on January 3, 2017.



FactSet, MarketWatch

GE's share price has risen 46.0% since the start of the year, while the exchange-traded SPDR Industrial Select Sector fund has

XLI, + 1.67%

have risen 20.7% and the Dow Jones Industrial Average

DJIA, + 0.94%

has gained 14.6%.


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