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 ,
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
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.
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.
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.
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%.