General Electric Company (NYSE:GE) furloughs more workers as union strike enters fourth week

General Electric Company (NYSE:GE) furloughs more workers as union strike enters fourth week

General Electric Company (NYSE:GE) furloughs more workers as union strike enters fourth week

The United Auto Workers’ strike against General Motors, now in its fourth week, is continuing to hit the automaker’s operations outside of the U.S.

The company halted production of a V-8 engine and transmission at its engine plant in Ramos Arizpe, Coahuila, Mexico, and told about 415 of the factory’s 2,100 employees not to come to work on Monday, a company spokesman told CNBC on Monday. The temporary layoffs add to roughly 10,000 non-UAW workers in North America who have been furloughed because of the strike.

GM last week idled a plant in Mexico that produces its highly profitable Chevrolet Silverado and GMC Sierra 1500 pickups, temporarily laying off 6,000 workers. Prior to that, the company cut several operations in Canada and its jointly operated DMax engine facility in Ohio.

The Buckingham Research Group on Monday estimated GM has lost about 153,000 units of production after three weeks, much of which it won’t be able to make up in the fourth quarter.

GM’s stock opened Monday at $34.60, down 10% since the Friday before the strike began. Shares of the Detroit automaker are still up 4.4% for the year.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 9.11.

The projected upper bound is: 9.29.

The projected lower bound is: 7.75.

The projected closing price is: 8.52.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 22 white candles and 26 black candles for a net of 4 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

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 42.2311. This is not an overbought or oversold reading. The last signal was a buy 2 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 39.97. 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 35 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 -100. This is not a topping or bottoming area. The last signal was a buy 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

GENERAL ELEC CO closed down -0.010 at 8.560. Volume was 35% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
8.580 8.650 8.490 8.560 7,624,955
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 8.81 8.99 9.47
Volatility: 38 56 51
Volume: 10,055,620 13,747,888 15,384,193

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 9.6% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GE.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GE.N and have had this outlook for the last 18 periods.

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