This industrial giant is flashing signs of a bullish turnaround. Trading the bounce with options

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This industrial giant is flashing signs of a bullish turnaround. Trading the bounce with options

Amid the geopolitical tensions and the resulting March market corrections, many stocks have taken a massive hit. GE Aerospace is a prime example, shedding roughly 22% of its value in under two …

Amid the geopolitical tensions and the resulting March market corrections, many stocks have taken a massive hit. GE Aerospace is a prime example, shedding roughly 22% of its value in under two months. Even after beating recent earnings estimates, the stock continued to slide because forward guidance remained flat. However, the chart is now flashing multiple early warning signs of a structural trend change. That is exactly what I am stalking for today's trade setup. I am relying on three core indicators to time this potential reversal: I am relying on three core indicators for this trade setup: Accelerated MACD (5, 13, 5): I prefer this highly responsive MACD setting because it highlights shifts in momentum well before the crowd catches on. Right now, the blue MACD line is aggressively curving upward but has not quite crossed above the yellow signal line. That crossover is the final confirmation required to make this setup solid. If GE maintains its current trajectory, we could see that trigger in the next day or two. Directional movement index (DMI): The DMI is my go-to for assessing the internal health of a trend. It tracks the DI+ (green line) for buyers and the DI- (red line) for sellers. GE is currently in a clear downtrend, marked by the red line dominating the green. However, we are now seeing both lines curl and actively change their trajectories. This convergence provides the very first footprint of a structural trend change. …

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