General Electric (GE) has possibly been the most hotly debated stock in the market for the past couple of months. We all know why so I won’t rehash it here, but the recent dividend cut as well as a cacophony of negative analyst sentiment has sent shares to multi-year lows yet again. I was bearish on GE for a long time and the reasons why I was bearish came to fruition. But of late, I have thought there was some value to be had in GE at these levels.
The chart is really ugly
There are many challenges facing GE shareholders but the first one is the technical picture of the chart. We can see the extent of the damage that has occurred just in 2017 as GE has been nearly cut in half this year. In addition to that, GE’s 200DMA is one of the steepest slopes I’ve seen for that particular indicator, which certainly isn’t a compliment. The good news is that the stock has been oversold for a few weeks now and is beginning to stabilize, so it looks like at least a temporary bottom is in. But given the state of the chart, GE bulls certainly have an enormous amount of work ahead.
