Summary
On January 23, I wrote “Avoid General Electric Until It’s No Longer A Component Of The Dow 30”.
GE closed at $16.89 on January 23 and left the Dow 30 at $12.74 on June 25.
The year-to-date low of $11.21 was set on September 26, and my quarterly value level at $10.32 suggests stability into the end of the year.
General Electric Co. (GE) has been a lost leader for a long time for many reasons. As a chartist, the price action for GE reflects the summation of all the bullish and bearish events for the stock as the downside intensified.
A positive is the fact that the stock has stayed above $10 a share, which is an important threshold. Many equity money managers cannot own a stock once it falls below $10 a share, and since I show a value level at $10.32 for the 4th quarter, my call is that General Electric will remain above $10 for the remainder of 2018.
When I wrote, “Avoid General Electric Until It’s No Longer A Component Of The Dow 30” back on January 23, the stock closed at $16.89. Five months later, on June 25, GE was removed the Dow Jones Industrial Average at $12.74, down 24%.
