Is this a dip to buy?  GE reached new 2019 highs on Tuesday as its post earnings(1/31) breakout began to show signs of exhaustion.  Shares have been drifting since leaving behind a downside reversal that day.  GE will soon fill the powerful earnings driven breakout gap.  The stock finished with an 11% gain that day after gaining as much as 16% in the early going.  Volume diving this big move was very heavy, the biggest upside day since mid 2015.  

If volume continues to ease as GE drifts lower we believe a gap fill move($9.30) will present a very low risk entry opportunity for patient investors.  On the downside, a close below $8.60 would violate last week’s low sending a clear warning sign that the post earnings momentum has been wiped out. 

At time of publication we are long GE in some managed accounts.