• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

General Electric Charts Still in Long-Term Repair Mode

GE will take months and months to build out a proper base that can support a sustained move.
By BRUCE KAMICH
Mar 14, 2019 | 09:26 AM EDT
Stocks quotes in this article: GE

General Electric, Co. (GE) is once again in the news and once again our Stock of the Day here at Real Money after CEO Larry Culp issued a 2019 profit forecast that fell short of expectations.

The conglomerate anticipates 2019 adjusted earnings to be between $0.50 and $0.60 a share, below the $0.70 cents a share analysts on Wall Street expected. "We have work to do in 2019, but we expect 2020 and 2021 performance to be significantly better," Culp said in a statement. At last look GE was showing a 3% gain ahead of Thursday's opening despite the disappointing outlook. GE may be a moving target, but what do the charts and indicators look like here on Thursday?

We looked at GE back on March 6, so I do not anticipate much change overall. In this daily bar chart of GE updated through Wednesday's close, below, we can see that prices were soft/weak earlier this month with GE retesting the rising 50-day moving average line. Trading volume was between 100 million and 200 million shares, so there was some "voting with the feet" or the mouse by traders and investors. Investors tend to anticipate (correctly or incorrectly) news such as earnings, so we could have GE closing higher here on Thursday despite what appears to be bearish news (above).

GE is and has been a widely followed company on Wall Street, so the latest announcement may be a non-event for many. Meanwhile, GE is still below the declining 200-day moving average line. The daily On-Balance-Volume (OBV) line is inching up from December but still not what I would call robust. Yes, there is some buying going on, but a widely held stock such as GE needs lots and lots of buying to move it up. The daily Moving Average Convergence Divergence (MACD) oscillator is in a take-profits sell mode from early February but could turn up to a fresh outright go-long signal -- it all depends on the price action from here.

In this weekly bar chart of GE, below, we can see that GE failed (so far) at the underside of the declining 40-week moving average line. The weekly OBV line has come off its early December nadir but it is not setting the world on fire. The weekly MACD oscillator is pointed up toward the underside of the zero line but it is still a long way off.

In this Point and Figure chart of GE, below, we can see the price parameters that will influence this chart. A trade at $10.18 will help, but a trade at $10.59 is even better. A decline to $9.03 will be a new low for the move down and is likely to open the way to further losses.

Bottom line strategy: Not much has changed from March 6 and our last review. GE is a huge conglomerate with millions and millions of shares outstanding. It is like a huge battleship that takes miles to make a turn. GE will take months and months to build out a proper base that can support a sustained move. Management has their work cut out for themselves. Traders should look for opportunities in stocks that are outperforming the broad averages.

How Much Money Will I Need to Retire?

Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Aerospace | Financial Services | Health Care Equipment & Services | Healthcare | Conglomerates | Industrial Goods | Industrials | Oil Equipment/Services | Real Money

More from Investing

Chevron Is Not Only Greasing the Wheels, It's Turbocharging Them

Jim Collins
Jan 26, 2023 5:07 PM EST

Let's look at why CVX's buyback news is a big deal for investors.

Traders Hold Their Noses and Buy

James "Rev Shark" DePorre
Jan 26, 2023 4:27 PM EST

The dull market got a boost from Tesla, but this is not the kind of action we want to see.

Phillips 66 Looks Like It's on the Right Route

Bruce Kamich
Jan 26, 2023 1:33 PM EST

PSX appears poised for further gains as earnings approach, according to the charts and indicators.

In the Wild World of Crypto, a Wild Bitcoin Play Is the Best Call

Mark Abssy
Jan 26, 2023 1:24 PM EST

The situation for bitcoin investors right now is tough, but as we look at the crypto exchange-traded funds and the digital currency, I see one good 'option.'

The Long-Term Trend of Booz Allen Hamilton Is Bullish

Bruce Kamich
Jan 26, 2023 12:15 PM EST

If the earnings report is bearish, here's what to know.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 03:06 PM EST BOB LANG

    LEAPS Webinar

    This week, I offered a free webinar session talkin...
  • 02:53 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 04:58 PM EST REAL MONEY

    The Latest AAP Podcast!

    Listen in as AAP Tackles Earnings, the Fed, Recess...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login