General Electric Company (NYSE:GE) Agreement With Dussur

General Electric Company (NYSE:GE) Agreement With Dussur

General Electric Company (NYSE:GE) Agreement With Dussur

  • Shares of General Electric (GE) have dropped nearly 14% so far this year, putting it near (though not at) the bottom of the Dow Jones Industrial Average. Yet despite GE’s weakness, the Industrial Select Sector SPDR ETF (XLI) has gained 6.8% in 2017, just a tad below the S&P 500’s 7.8% rise.
  • The company made it official that the 2018 $2.00 EPS estimate should be viewed as the top end of management’s guidance.
  • The company confirmed that the recent dividend concerns are ‘hogwash’.
  • General Electric (GE) signed a one billion riyal ($267 million) joint venture agreement on Wednesday with Saudi Arabia’s state-backed Dussur industrial development company to manufacture gas turbines in the eastern city of Dammam.

General Electric Company is a global digital industrial company. The Company’s products and services range from aircraft engines, power generation, and oil and gas production equipment to medical imaging, financing and industrial products. Its segments include Power, which includes products and services related to energy production and water reuse; Renewable Energy, which offers renewable power sources; Oil & Gas, including liquefied natural gas and pipelines; Aviation, which includes commercial and military aircraft engines, and integrated digital components, among others; Healthcare, which provides healthcare technologies in medical imaging, digital solutions, patient monitoring and diagnostics, and drug discovery, among others; Transportation, which is a supplier to the railroad, mining, marine, stationary power and drilling industries; Energy Connections & Lighting, which includes Energy Connections and Lighting businesses, and Capital, which is a financial services division.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 29.09.

The projected upper bound is: 28.02.

The projected lower bound is: 26.60.

The projected closing price is: 27.31.

GENERAL ELEC CO closed down -0.090 at 27.360. Volume was 15% above average (neutral) and Bollinger Bands were 69% wider than normal.

Open       High      Low         Close        Volume
27.310    27.450    27.160    27.360    36,435,744

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period        50-period      200-period
Close:                       27.76               29.13              30.06
Volatility:                22                    16                    16
Volume:                  39,077,636    31,807,850    31,408,928

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary
GENERAL ELEC CO is currently 9.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of GE (mildly bearish). Our trend forecasting oscillators are currently bearish on GE and have had this outlook for the last 23 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 11.8457. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 30.46. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 26 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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