General Electric Co. (GE/NYSE): general analysis
17 August 2018, 11:27
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 12.15 |
| Take Profit | 11.80, 11.40, 11.20 |
| Stop Loss | 12.60 |
| Key Levels | 11.80, 12.20, 12.60, 13.25, 13.60 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 12.65 |
| Take Profit | 13.20, 13.60 |
| Stop Loss | 12.20 |
| Key Levels | 11.80, 12.20, 12.60, 13.25, 13.60 |
Current trend
On August 15, General Electric stocks renewed the 9-year minimum. After the publication on July 20 of poor Q2 financial results, the price fell by 10.34%, and since the beginning of the year by 29.54%. The key issue for General Electric remains the energy business, the company has already reduced the annual revenue forecast for this segment by $500 million. Considering the results of the first half of the year, the probability of reaching its own forecast of 1.95 billion US dollars remains rather poor.
During the last week, General Electric decreased by 4.95% against the fall of S&P 500 index by 0.46%.
Support and resistance
The "bearish" moods prevail. #GE price is now consolidating. The instrument is testing the support level of 12.20. The level of 12.60 is a local resistance. In the near future, a technical correction is not excluded. Indicators reflex the strength of sellers: the price was fixed below MA (50) and MA (200); MACD is in the negative zone. However, 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: 12.60, 13.25, 13.60.
Support levels: 12.20, 11.80.
Trading tips
Short positions can be opened after the price is set below the level of 12.20. The closing of the profitable positions is possible at the levels of 11.80, 11.40 and 11.20. Stop loss is 12.60.
Long positions can be opened after the price is set above the level of 12.60 with the targets at 13.20–13.60. Stop loss is 12.20.
Implementation period: 3 days.
On August 15, General Electric stocks renewed the 9-year minimum. After the publication on July 20 of poor Q2 financial results, the price fell by 10.34%, and since the beginning of the year by 29.54%. The key issue for General Electric remains the energy business, the company has already reduced the annual revenue forecast for this segment by $500 million. Considering the results of the first half of the year, the probability of reaching its own forecast of 1.95 billion US dollars remains rather poor.
During the last week, General Electric decreased by 4.95% against the fall of S&P 500 index by 0.46%.
Support and resistance
The "bearish" moods prevail. #GE price is now consolidating. The instrument is testing the support level of 12.20. The level of 12.60 is a local resistance. In the near future, a technical correction is not excluded. Indicators reflex the strength of sellers: the price was fixed below MA (50) and MA (200); MACD is in the negative zone. However, 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: 12.60, 13.25, 13.60.
Support levels: 12.20, 11.80.
Trading tips
Short positions can be opened after the price is set below the level of 12.20. The closing of the profitable positions is possible at the levels of 11.80, 11.40 and 11.20. Stop loss is 12.60.
Long positions can be opened after the price is set above the level of 12.60 with the targets at 13.20–13.60. Stop loss is 12.20.
Implementation period: 3 days.
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