GE BEARISH ON REPORTS OF GLITCHES IN NEW TURBINES
General Electric is currently trading at $12.37-lower by 3.6% as compared to the previous closing. However, the stock was in positive territory in the last 6 trading sessions. Further back, it has closed in the positive, in 7 out of the past 8 trading sessions. Earlier on Thursday before the open, the stock was down 2% in Pre-market trading.
GE plunged after the chief of its power division revealed a problem with its newest line of natural gas-fired power turbines on Wednesday. Subsequently .J.P. Morgan cut its price target to $10 per share from $11 per share on Thursday.
According to the letter from GE Power Chief Executive Russell Stokes posted on LinkedIn, the company had discovered an “oxidation issue” that affects the lifespan of blades in its HA-Class turbines, a major product line for GE’s power division.
J.P. Morgan disclosed on Thursday that the problem appeared to have resulted in a broken turbine blade at a power plant in Texas owned by Exelon, based on discussions with GE and Exelon.
On the technical front, the RSI is currently at 42.82% and suggests that the market can move in the downward direction. The %K has crossed the %D from above to the downside at 63.01% and suggests that the market may head downwards. The Current Price is below the MA5.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT SELL AT 12.47 TAKE PROFIT AT 12.27 STOP LOSS AT 12.57