• 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

Long-Time Sell-Side General Electric Bear Changes His Tune

Let's see if there's anything new on GE's charts.
By BRUCE KAMICH
Mar 02, 2020 | 09:30 AM EST
Stocks quotes in this article: GE, JPM

General Electric Co. (GE) is the "Stock of the Day" at Real Money on Monday . It seems that a sell-side analyst has changed his tune about the company. Stephen Tusa, an industrial goods sector analyst with J.P. Morgan (JPM) , has lifted this bearish opinion on GE. I will leave others to dig through his report and fundamental reasons but we have been positive on the stock for several months. Let's see if there's anything new on the charts. 

In this daily bar chart of GE, below, we can see that prices have reacted lower in the past month as global pandemic worries have prompted selling on the expectation of slowing growth. GE tested and so far held above the rising 200-day moving average line. GE gapped below the cresting/declining 50-day moving average line in the past week or so.

The daily On-Balance-Volume (OBV) line shows a peak in late November and weakness to date. The OBV line diverged from the price action until the latter part of February.

The Moving Average Convergence Divergence (MACD) oscillator shows a peak in November and just moved below the zero line in the past week for an outright sell signal.  

 
In this weekly bar chart of GE, below, we can see that prices are still above the bottoming 40-week moving average line. The size of the base pattern on GE is substantial and the weekly OBV line hardly shows any weakness.
 
The MACD oscillator on this longer time frame has been bullish since November and only now has narrowed in the past couple of weeks. 
 
 
In this daily Point and Figure chart of GE, below, we can see a potential longer-term price target in the $22.50 area. The volume by price bars on the left scale suggests both support below the market and resistance in the $11.50-$12.50 area.  
 
Bottom-line strategy: I don't know how wide an institutional audience Mr. Tusa has and whether his reasoning will generate aggressive buying in the near term. Weakness in the broad market could dampen his impact. As a technical analyst I would wait for strength back above $13 before buying or adding to longs. 

(General Electric and JP Morgan are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GE or JPM? Learn more now.)

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 prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Aerospace | Industrials | Analyst Actions | Stock of the Day

More from Investing

McCormick Might Leave a Bad Taste in Investors' Mouths

Bruce Kamich
Oct 3, 2023 2:51 PM EDT

The charts don't look very appetizing for the spice company.

American Express: Leave Home Without It

Bruce Kamich
Oct 3, 2023 1:55 PM EDT

The charts show further declines ahead for the credit card company.

Costco: Are We Witnessing a Bull Trap?

Bruce Kamich
Oct 3, 2023 1:08 PM EDT

When one of the last holdouts of the S&P 500 turns down the selloff is in full gear.

Chasing Alpha With Alphabet

Ed Ponsi
Oct 3, 2023 12:35 PM EDT

I'm not the only one who likes the tech behemoth. Bill Ackman believes Alphabet will be a leader in AI for years to come.

Here's My Prescription for Eli Lilly Investors

Bruce Kamich
Oct 3, 2023 11:56 AM EDT

It looks like it's time to get off the meds, for now.

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

  • 12:13 PM EDT BRUCE KAMICH

    8 Trading Rules from T. T. Hoyne

    You just read the header for this missive and prob...
  • 08:42 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How Elite Traders Make Big Profits
  • 02:58 PM EDT BRUCE KAMICH

    Classic Trading Rules From Bernard Baruch

    Bernard Baruch listed the rules (below) in his aut...
  • 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