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General Electric (NYSE:GE) Stock is Likely to be Volatile with a Downward Bias Around Q4 Earnings

$GE #GeneralElectric #USA #NYSE #Stocks #Market #Trading

General Electric
Ticker: NYSE:GE
Price: $11.27

General Electric News

General Electric finished 2020 with a loss of over 10%. Although GE had a remarkable comeback from the lows hit in March in the early days of the pandemic, the shares did not have a full recovery during the year.

Even before the uncertainty due to the pandemic hit our shores last year, GE’s management was finding it difficult to regain shareholder trust for the long term. 2020 is likely to be another challenging year for those at the helm of the industrial giant.

In the coming weeks, I expect GE stock to trade in a range between $8 and $10. Long-term investors with a two-to-three year horizon may consider buying General Electric shares if the price goes toward $9 or even below. Patience will be required to see your capital grow for the company with a long history of lackluster performance.

If you already own GE stock, you might want to stay the course. Alternatively, if you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a six-week time horizon, i.e., Feb 19-expiry. Such a covered call position would enable to you to participate in a potential up move and also offer some downside protection.

Business Summary

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; 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.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 12.03.

The projected lower bound is: 10.67.

The projected closing price is: 11.35.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 white candles.

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 74.8809. This is not an overbought or oversold reading. The last signal was a sell 17 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 63.50. 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 sell 14 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 16 period(s) ago.

Rex Takasugi – TD Profile

GENERAL ELEC CO closed down -0.090 at 11.270. Volume was 5% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open     High      Low      Close      Volume
11.550   11.570    11.245   11.270     19,293,246
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period    50-period     200-period
Close:           10.81        9.90          7.51
Volatility:      45           45            67
Volume:          13,029,068   18,118,762    18,005,832

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 50.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.

Our volume indicators reflect volume flowing into and out of GE.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GE.N and have had this outlook for the last 7 periods.

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