In the "Lightning Round" during Tuesday night's Mad Money program, Jim Cramer was bearish on General Electric (GE) . GE has been in a "tailspin" for months but it always pays to see if anything has changed. Let's pay a quick visit with a couple of charts.
In this daily bar chart of GE, below, we can see the downtrend that everyone knows about - prices are below the declining 50-day moving average line and the bearish 200-day line.
The daily On-Balance-Volume (OBV) line has been declining to confirm the bear trend.
In the lower panel is the 12-day price momentum study which shows that momentum has been slowing. At this low price level it is not a surprise that the decline is slowing. This is a bullish divergence but I doubt it can produce a meaningful advance.
In this Point and Figure chart of GE, below, we can see a downside price target of $6.39. In this bearish environment in the broad market I wonder if any institutional buyers are willing to become aggressive buyers around $6.39.
Bottom line strategy: Cramer and I are on the same page with GE - still not an attractive looking stock.