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Non-Tech : General Electric (GE)
GE 305.10+0.3%Nov 5 3:59 PM EST
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From: Underexposed12/7/2018 12:58:31 PM
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Well, in my last message (Message #2791) I said the following:
What this means that GE has entered a consolidation period...

this does not mean a halt to the decline in price. Rather it is wandering around.

AT BEST will move sideways until it encounters the 20 daySMA

AT WORST it will continue its decline but at a slower pace until it encounters the 20 daySMA
Here are the charts as they stand today at 9:45am MST



Well, you can see the break of a support at $7.50 which has no changed into a pretty decent resistance and we are 8 cents away from adding another zero to the chart.

the Trigger chart did follow the "at worst" prediction which was not the "absolute worst" that could have happened which would have been a plunge in price from the last post.

But it is not good either. First of all note that the share price HAS NOT even touched the 20 day SMA yet... it is drifting below it edging downward.

Second of all: Note the lack luster action of the Slow Sto. Weaving sideways but never challenging the level 20 yet... in fact it is going negative right now...though it cannot go much lower {sigh}

Third: You can ignore the MACD right now it does not mean much. Yes it has a positive slope but it is the Slow Sto that leads a breakout .... not the MACD

Fourth: the BBWidth is still falling, meaning the consolation period continues. Where will it fall to before the next major move??? The green line suggests somewhere around 10.

when the BBwidth reaches 10.... that is the point when you seriously watch the Slo Sto and MACD...especially the Slow Sto....if it sharply rises and is reaching for 80 with a positive MACD... then you anticipate a good rise... If the MACD starts negative and the Slow Sto stays where it is... then another major downturn is in the offing... not the death-by-a-thousand-cuts that is currently happening.

Here are the next 2 charts



There is not a bullish bone in these two charts.

in the sentiment chart to the left you can see why I don't trust the Par Sar unless it is in the throat of a BB squeeze. See how it touched the top of the price in late November which is a bullish signal but it reversed itself a week later and has resumed being a bear.

the Force 30 is quite bearish, the RSI 30 is bearish neutral for a long time, the DI+/- shows no sign of ending its bear run.

The ichimoku chart is equally bad... look at the huge bearish divergence of the red/blue thin lines... As well look at how FAT that red cloud is getting....when it is eventually reached that will be a huge barrier to overcome.

The OnBal volume is bearish neutral as is the CCI.

Conclusion

To say that the GE company has not been and still in CRISIS is nonsense... or at best a total misread of its situation. In two years it has lost about 75% of its value without even a sign of turnaround and the bleeding shows no arresting in the future. If that is not a corporate crisis I don't know what is.

It is looking like it will be sub-$7.00 by Christmas at the latest and could even be sub-$6.00 if that major move that shows coming causes the stock to hit the skids.

The lack of a meaningful dividend (you cannot call a $0.01/quarter meaning full with the drop in share price) compounds the issue as you lose all those that bought GE for investment reasons. Mr. Culp has caused a lot of reorganization in the company but the next quarterly report, sometime in Feb 2019 probably, will show how successful that reorg will be.

I don't know if GE will go to wallpaper.... there is no sign where the bottom will occur at this point but I would say as things look now I would not bet against the share price falling lower than 2009's low.... that is the last support level.

UE
_____________________________________________________________________________________

Disclaimer:

I am not a registered broker. I am retired and use Technical Analysis as the main tool in my investment decisions. Accept or reject my comments as you will, but do your own Due Diligence (DD) before making any decisions based on the information I provide.

Underexposed
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