Trading Robots Generate +7% Gain by Utilizing Technical Analysis and Fundamental Data on GE
These bots leverage a combination of technical analysis (TA) and fundamental analysis (FA) to make data-driven decisions and execute trades. In this article, we will explore the success of AI trading robots accessible through the "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" platform, focusing on their recent performance with General Electric (GE) stock. By analyzing the earning results and using advanced indicators, these bots were able to generate a remarkable +7% gain during the previous week. Let's delve into the details of their strategy and the factors that contributed to their success.
Analyzing the Aroon Indicator:
On June 21, 2023, GE's Aroon Indicator, a popular technical indicator, triggered a bullish signal. Tickeron's A.I.dvisor, an AI-powered trading assistant, detected a specific pattern where the AroonUp green line was above 70, while the AroonDown red line remained below 30. This combination suggests a potential bullish move in the stock. Traders who rely on this indicator interpret such conditions as an opportune time to buy the stock or consider purchasing call options.
To validate the reliability of this bullish pattern, A.I.dvisor analyzed historical data and found 272 similar instances where the Aroon Indicator exhibited the same pattern. In an impressive 78% of these cases (211 out of 272), the stock moved higher in the subsequent days. This statistical analysis lends support to the likelihood of a positive price movement following the identified Aroon Indicator pattern.
Understanding Earnings Results:
The most recent earnings report for General Electric was released on April 25, which showed earnings per share (EPS) of 27 cents. This exceeded the estimated EPS of 14 cents, signaling a significant beat in expectations. Such positive surprises often attract investors' attention and can contribute to a surge in stock prices.
Considering the number of shares outstanding, which stands at 2.97 million, the current market capitalization of General Electric amounts to an impressive $117.91 billion. These figures provide a snapshot of the company's value in the market and offer insights into its overall financial strength.
Summary:
By combining technical analysis with fundamental data, AI trading robots accessible through the "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" platform achieved an outstanding +7% gain while trading General Electric (GE) over the course of the previous week. Their success can be attributed to the identification of a bullish pattern using the Aroon Indicator, which displayed a high probability of a subsequent price increase. Additionally, the company's positive earnings report and beat on EPS estimates further bolstered investor confidence in GE.
GE in -1.48% downward trend, sliding for three consecutive days on September 20, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GE declined for three days, in of 301 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 14, 2023. You may want to consider a long position or call options on GE as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GE just turned positive on September 14, 2023. Looking at past instances where GE's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
GE moved above its 50-day moving average on September 11, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .
GE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 304 cases where GE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.008) is normal, around the industry mean (12.476). P/E Ratio (12.422) is within average values for comparable stocks, (44.921). Projected Growth (PEG Ratio) (1.595) is also within normal values, averaging (2.027). GE has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.021). P/S Ratio (1.554) is also within normal values, averaging (10.734).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry IndustrialMachinery
GE and
Correlation & Price change
A.I.dvisor indicates that over the last year, GE has been loosely correlated with CR. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if GE jumps, then CR could also see price increases.