Key Takeaways

• GE Vernova shares gained 5% on Wednesday, one day after the energy equipment maker raised its long-term sales outlook, declared a dividend and announced a stock-buyback plan.

• The stock broke down below the lower trendline of an ascending triangle on Tuesday, but staged an intraday reversal to close back within the pattern today, potentially creating a bear trap.

• Investors should watch important overhead areas around $355 and $400, while also monitoring key support levels near $295 and $258.

GE Vernova (GEV) shares jumped on Wednesday, one day after the energy equipment maker raised its long-term sales outlook.

The company, which projected 2028 sales of about $45 billion, also announced a 25-cent quarterly dividend and $6 billion stock buyback.

Since the company’s spinoff from GE Aerospace (GE) on April 2 as part of three-way breakup of the General Electric conglomerate, GE Vernona shares have more than doubled, boosted by surging demand for gas turbines and electrical grid equipment used to generate power for artificial intelligence (AI) data centers.

The stock gained 5% to close Wednesday near $344.

Below, we take a closer look at GE Vernova’s chart and apply technical analysis to locate important price levels worth watching after the company’s financial update.

Ascending Triangle in Focus

After topping out in November, GE Vernova shares consolidated within an ascending triangle before breaking down below the pattern’s lower trendline in Tuesday’s trading session.

However, the shares staged an impressive intraday reversal today to close back within the triangle on the highest trading volume since early June, potentially creating a bear trap in the process.

Moreover, the relative strength index (RSI) turned upwards after several consecutive lower readings, signaling improving price momentum.

Let’s identify important overhead areas on GE Vernova's chart to watch and also point out two key support levels to monitor during retracements.

Important Overhead Areas Watch

Amid further buying, investors should watch how the stock's price responds to the $355 area, a region on the chart where it may encounter selling pressure near the ascending triangle's top trendline.

To project a price target above the stock's record high, investors can use the measuring principle, a technique that analyzes prior price action to forecast future moves.

To apply the tool to GE Vernova’s chart, we calculate the distance between the ascending triangle’s two trendlines near their widest point and add that amount to the pattern’s top trendline. In this case, we add $45 to $355, which projects a bullish target of $400, an area where those who bought the stock at lower levels could decide to lock in profits.