Photo: Courtesy of Thomas Hawk on Flickr

General Electric Co. GE shares are trading lower Tuesday after the company reported its Q4 earnings results. General Electric beat estimated earnings by 5.75%, reporting an EPS of $0.92 versus an estimate of $0.87, which did not surprise analysts. Revenue was up $1.62 billion from the same period last year.

General Electric was down 7.07% at $90.06 at the time of publication.

General Electric Daily Chart Analysis

• The stock has fallen below support in what traders call an ascending triangle pattern. The price then pushed back higher and tried to reclaim the support level but was unsuccessful, leading to another push lower.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a strong dip lower and now sits at 31. The RSI registered at 65 two weeks ago, and has been plummeting since the market drop. If the RSI falls any lower, it will reach the oversold region, where there are many more sellers than buyers.

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What’s Next For General Electric?

Breaking below the higher low trendline was a bearish sign, as the stock was unable to form any additional higher lows. The stock then rallied back up to this level and found resistance near the trendline, showing that there are now sellers in that zone. It's another bearish sign that the stock could see another dip.

Bears are in control of the stock and are looking to see it continue to fall and hold below the moving averages.

Bullish traders want to see the stock find some support and begin to print higher lows once again and head back up toward the $115 level.