GE Aerospace Extends Losses to 5.33% as Bearish Signals Mount

Introduction
GE Aerospace (GE) declined 3.74% in the most recent session, extending losses to a two-day drop of 5.33%. This analysis evaluates the stock’s technical posture using multiple frameworks to identify key trends, support/resistance levels, and potential reversal signals based on the provided one-year dataset.
Candlestick Theory
Recent candlesticks reveal a bearish shift for GE Aerospace. The session on June 6 formed a "shooting star" (high: $257.47, close: $255.63) near yearly highs, signaling exhaustion after an uptrend. This was followed by two consecutive bearish candles on June 9 (-1.65%) and June 10 (-3.74%), breaching the immediate support at $251.41 and closing near session lows at $242. The breakdown suggests solidifying resistance around $257.50 and projects near-term support at $235–$238, aligning with the May consolidation zone. A close below $235 would invalidate this level.
Moving Average Theory
The moving averages (MAs) reflect a weakening trend structure. The 50-day SMA ($229) remains above the 100-day SMA ($215) and 200-day SMA ($190), preserving the longer-term uptrend. However, the price ($242) has pierced below the 20-day SMA ($251), signaling short-term bearish momentum. The convergence of the 50-day and 100-day SMAs suggests potential trend compression, with a decisive break below the 50-day SMA ($229) needed to confirm a mid-term downtrend.
MACD & KDJ Indicators
MACD shows bearish acceleration, with the MACD line crossing below the signal line in early June and both trending negative. KDJ metrics amplify near-term downside risk: the %K line (23) and %D line (34) are entrenched below the 50 midpoint, reflecting oversold momentum. While this divergence typically precedes rebounds, the absence of a bullish crossover in KDJ coupled with MACD’s downward trajectory implies persistent selling pressure.
Bollinger Bands
Volatility expansion is evident, with June’s sell-off pushing prices toward the lower Bollinger Band (~$235). The band width has widened after contraction in late May, indicating renewed directional momentum. Price rejection near the upper band in early June ($257) preceded the current decline. Holding above the lower band is critical; failure could trigger a breakdown toward $220.
Volume-Price Relationship
Volume patterns validate bearish conviction. The June 10 sell-off occurred on 11.0M shares – 91% above the 30-day average – confirming capitulation. The two-day decline saw volume surge 41% relative to the preceding three sessions, supporting downside sustainability. Conversely, the May 23 rally to $233 lacked comparable volume, undermining its significance as resistance turned support.
Relative Strength Index (RSI)
The 14-day RSI (38) approaches oversold territory but remains above the 30 threshold. While neutrality persists, the metric has diverged negatively from price action: the June high ($257) coincided with a lower RSI peak (58 vs. 62 in May), signaling fading bullish momentum. Historically, reversals occurred near RSI 35–40 in April and January; a breach below 30 would warn of extended downside.
Fibonacci Retracement
Applying Fibonacci to the major swing low ($150.20 on August 5, 2024) and high ($257.47 on June 6, 2025) yields key levels. The recent pullback to $242 represents a 14.4% retracement, placing it above the 23.6% level ($232.15). This zone now serves as primary support. Conclusive breaks below $232 would target the 38.2% retracement ($216.50). Upside is capped by the 0% level ($257.47).
Confluence and Divergences
Confluence is observed at $232–$235, where the 50-day SMA, Fibonacci 23.6% retracement, Bollinger lower band, and May swing lows converge, making it a pivotal support cluster. Notable divergences include KDJ’s oversold signal against MACD’s bearish crossover and weakening RSI momentum despite elevated prices in June.
Conclusion
GE Aerospace exhibits deteriorating technical strength, driven by volume-supported breakdowns and bearish indicator alignments. While oversold conditions may prompt tactical rebounds, the confluence of resistance at $251–$257 and vulnerability below $235 favors a cautious outlook. A sustained hold above $232 would maintain the broader uptrend, but failure risks a deeper correction toward $216.50.