General Electric Bounces Back After Announcing Acquisition: What's Next?

General Electric Co. GE shares are trading higher Tuesday after the company’s digital unit agreed to acquire software company Opus One Solutions Energy to enhance its renewable offerings.

The stock looks to be bouncing back after falling below support in a pattern.

General Electric stock was up 3.36% at $93.01 Tuesday morning at publication.

See Also: Can Hydroelectric Dams and Fish Coexist? This Company Says They Must, and It's Out To Prove How To Do It

General Electric Daily Chart Analysis

  • The stock was trading in what traders call an ascending triangle with resistance near $115 before it fell below the higher low trendline. The stock took a bearish turn after this support level was broken, but after the announcement of the acquisition, the company is bouncing back.
  • The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
  • The Relative Strength Index (RSI) is seeing a bounce back today and pushed higher to 41. This shows that more buyers have moved into the stock after the news, but still there remains more overall selling pressure.

What’s Next For General Electric?

General Electric broke below the moving averages and the support level and began to start down-trending. The acquisition news could be the catalyst to help the price bounce back and begin trending higher once again. Bulls are looking to see the stock cross back above the higher low trendline and for the stock to hold this area as support again before going on to break above the $115 resistance level. Bears are looking to see the stock continue to trade below the higher low trendline and want the stock to begin to form a lower high trendline to show it is still trading with weakness.

Photo by Júnior Ferreira on Unsplash

Posted In: Opus One Solutions EnergysoftwareLong IdeasNewsShort IdeasTechnicalsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.