GE Vernova (GEV) shares will likely remain on 澳洲幸运5官方开奖结果体彩网:watchlists Wednesday after jumping more than 3% yesterday to 澳洲幸运5官方开奖结果体彩网:set a new record high following favorable coverage from lea🐻ding in🔯vestment banks.

Analysts at Barclays initiated their coverage of the stock with an "澳洲幸运5官方开奖结果体彩网:overweight" rating and 澳洲幸运5官方开奖结果体彩网:price target of $250, while Bank of America analysts upgraded GE Vernova to a "buy" rating and raiseꦿd their price targe💙t to $300 from $200.

The banks argue that the stock remains undervalued compared to multi-industry peers due to the global energy giant’s greater exposure to the gas and electrification sectors, which sit poised for growth as demand for 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) data centers and electri🔯c vehicle (EV) charging infrastructure accelerates in coming years.

The stock has gained 69% since being spun off from GE Aerospace (GE) on April 2 as part of a larger breakup of the 澳洲幸运5官方开奖结果体彩网:General Electric conglomerate. Shares have gained 18% sܫince the start of September.

Below, we’ll take a closer look at the 澳洲幸运5官方开奖结果体彩网:technicals on GE Vernova’s chart and idꩲentify k🀅ey price levels that market participants will likely be watching.

RSI Indicates Short-Term Overbought Conditions

GE Vernova shares trended higher for two months after they started trading before moving into a 澳洲幸运5官方开奖结果体彩网:trading range between late May and early August.

Bullish price momentum resumed last month when the stock initially broke down below the range’s lower trendline, but promptly reversed course to create a 澳洲幸运5官方开奖结果体彩网:bear trap. Since that time, the stock has continued its longer-term uptrend, with gains recently accelerating following a breakout from a pennant, a chart pattern that indi🅠cates upside continuation.

However. Investors should be mindful of a potential short-term 澳洲幸运5官方开奖结果体彩网:retracement, given the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) points to extremely 澳洲幸运5官方开奖结果体彩网:overbought conditions in the stocꦯk with a ﷺreading above the 80 threshold. Last time the indicator flashed overbought conditions in early May, the price traded sideways for several weeks before completing its trending move later that month.

GE Vernova shares were up fractionally at $23🔯7.30 in recent premarket trading Wednesday.

Retracement Levels to Watch

During periods of weakness in the stock, investors shouꦓld monitor two key cꦓhart levels.

The first sits at $200, an area on the chart where the shares would likely find support from the 澳洲幸运5官方开奖结果体彩网:psychological round number and the top of the pennant patte꧂rn that formed earlier this month within the stock’🌸s uptrend.

A failure to hold this level could see the stock retest the $185 region, where it finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from prior trading range’s upper trendline and the upward sloping 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA).

Upside Price Target to Monitor

If the shares continue to trend higher, we can use the 澳洲幸运5官方开奖结果体彩网:measuring principle to project an upside price𝔉 target. To do this, we calculate the distance of the trending move that preceded the pennant and add that amount to the pattern’s breakout point. In this case, we add $50 to $200, which forecasts a target of $250.

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As of the date this article was written, the author does not own any of the above securities.