General Electric (NYSE:GE) Surprise Surge

General Electric (NYSE:GE) Surprise Surge

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

General Electric
Ticker: NYSE:GE
Price: $6.75

General Electric News

General Electric (GE) stock soared after CEO Larry Culp said Wednesday that he sees the company reaching positive cash flow earlier than previously expected.

GE burned through $4.3 billion in cash in the first half of 2020, due to its weak commercial aviation business. On the second quarter earnings call July 29, Culp warned that the “macro environment could deteriorate further” and forecast a lengthy aviation recovery.

Meanwhile, GE’s “crown jewel” reached a supply agreement as the coronavirus pandemic continues to weigh on air travel.

GE shares jumped 10.7% to 6.75 on the stock market today, closing above their 50-day average for the first time since July, according to MarketSmith chart analysis. GE stock still remains about 50% below its February high.

And the aviation sector faces years of recovery from the coronavirus collapse. Also Wednesday, GE’s jet-engine rival Raytheon Technologies (RTX) announced it would lay off 15,000 employees due to the weakened demand for new aircraft.

That’s more than the 8,500 projected in July for the parent company of Pratt & Whitney and Collins Aerospace.

At the Morgan Stanley conference, CEO Greg Hayes said the job cuts were part of plans to cut costs by $2 billion this year amid Covid-19.

“We see a gradual return to flight across all commercial markets but probably not a full return to 2019 levels until somewhere around 2023,” Hayes said, according to Bloomberg. “It really depends on the timing of a vaccine.”

Earlier this year, GE Aviation said it plans to cut up to 13,000 jobs, or about 25% of its workforce.

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: Downwards.

By the way, prices are vulnerable to a correction towards 6.86.

The projected upper bound is: 7.31.

The projected lower bound is: 6.19.

The projected closing price is: 6.75.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 19 white candles and 29 black candles for a net of 10 black 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 76.3407. This is not an overbought or oversold reading. The last signal was a buy 1 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 58.61. 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 69 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 96. This is not a topping or bottoming area. The last signal was a buy 2 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

GENERAL ELEC CO closed up 0.650 at 6.750. Volume was 132% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open     High     Low     Close     Volume
6.110    6.810    6.055   6.750     37,693,772
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bearish
Moving Averages: 10-period      50-period      200-period
Close:           6.24           6.53           8.38
Volatility:      75             54             80
Volume:          18,653,428     14,435,882     16,849,862

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 19.5% below 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 19 periods.

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