General Electric Company GE shareholders have had a rough go of it since the stock reached its highest point since 2008 on July 20. After peaking at $33.00, GE pulled back a bit ahead of a disappointing Q2 earnings report on July 26. Since then, shares have dipped as low as $31, but GE seems to have finally found some buyers.
If it continues to hold, $31 could serve as a key technical support level looking forward. GE’s 50-day simple moving average (SMA) currently sits at $31.11 and its 200-day SMA rests at $29.90. While the stock has dipped below its 50-day SMA on several occasions in 2016, the 200-day SMA has served as strong support for the stock since October of 2015.
Even during January’s huge market selloff, GE never closed below its 200-day SMA.
If $31 holds in coming days, look for GE to take another run at $33, or even make a longer-term push toward 2008 highs above $40. However, a breakdown below $31 doesn’t necessarily mean the stock is a sell, especially if it stays above its 200-day SMA.
GE stock has lagged so far in 2016, delivering a year-to-date return of -0.1 percent. However, its longer-term technical picture looks much more positive, and GE is up 19.2 percent in the past 12 months.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Disclosure: The author holds no position in the stocks mentioned.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
