General Electric Co. (GE/NYSE): general analysis
10 August 2018, 13:27
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 12.80 |
| Take Profit | 12.40, 12.00, 11.75 |
| Stop Loss | 13.25 |
| Key Levels | 12.00, 12.25, 12.85, 13.35, 13.85, 14.20 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 13.40 |
| Take Profit | 13.80, 14.10 |
| Stop Loss | 13.00 |
| Key Levels | 12.00, 12.25, 12.85, 13.35, 13.85, 14.20 |
Current trend
Since the end of July, General Electric shares are trading near the 52-week low due to the poor Q2 financial report release. Since the beginning of the year, the price decreased by 25.85%. Quarterly earnings per share decreased by 30% YoY to 0.07 USD due to poor energy business results. The company plans to cut 225 jobs and working hours at one of the energy divisions. General Electric also confirmed the forecast of adjusted earnings per share in 2018 at the level of 1–1.07 USD.
During the last week, General Electric decreased by 1.75% against the growth of S&P 500 index by 0.92%.
Support and resistance
The company's shares are consolidating after a long fall. The price is testing the year’s lows. Local levels of support and resistance are 12.85 and 13.35. In the near future, a technical correction is not excluded. Indicators do not give clear signals: the price was fixed below MA (50) and MA (200); MACD histogram is near the zero line. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 13.35, 13.85, 14.20.
Support levels: 12.85, 12.25, 12.00.
Trading tips
Short positions can be opened after the price is set below the level of 12.85. The closing of the profitable positions is possible at the levels of 12.40, 12.00 and 11.75. Stop loss is 13.25.
Long positions can be opened after the price is set above the level of 13.35 with the targets at 13.80–14.10. Stop loss is 13.00.
Implementation period: 3 days.
Since the end of July, General Electric shares are trading near the 52-week low due to the poor Q2 financial report release. Since the beginning of the year, the price decreased by 25.85%. Quarterly earnings per share decreased by 30% YoY to 0.07 USD due to poor energy business results. The company plans to cut 225 jobs and working hours at one of the energy divisions. General Electric also confirmed the forecast of adjusted earnings per share in 2018 at the level of 1–1.07 USD.
During the last week, General Electric decreased by 1.75% against the growth of S&P 500 index by 0.92%.
Support and resistance
The company's shares are consolidating after a long fall. The price is testing the year’s lows. Local levels of support and resistance are 12.85 and 13.35. In the near future, a technical correction is not excluded. Indicators do not give clear signals: the price was fixed below MA (50) and MA (200); MACD histogram is near the zero line. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 13.35, 13.85, 14.20.
Support levels: 12.85, 12.25, 12.00.
Trading tips
Short positions can be opened after the price is set below the level of 12.85. The closing of the profitable positions is possible at the levels of 12.40, 12.00 and 11.75. Stop loss is 13.25.
Long positions can be opened after the price is set above the level of 13.35 with the targets at 13.80–14.10. Stop loss is 13.00.
Implementation period: 3 days.
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