GE SAYS ITS RESERVES ARE ENOUGH, STOCK ABOVE MA20
General Electric stocks are currently trading at 9.40-higher by 3.29% as compared to the previous closing price.
The company said earlier today that its current reserves for long-term care insurance policies were sufficient and it was looking to increase premiums to cover their rising cost. GE said in its annual report it has achieved about $500 million worth of premium increases and is pressing for $1.2 billion in further increases to help stem losses on some 300,000 long-term care insurance policies, which cover such costs as in-home or nursing-home care.
Since last year, the company has reduced the total amount of insurance reserves it plans to set aside to $14.5 billion by 2024 after completing an analysis of the policies.
The Boston-based conglomerate also said it was putting more of its insurance assets into investments with higher yields. It said it currently invests about 2% of assets that way, compared with 12% for other insurers.
On the technical front, the current price is below the MA5. The current price is above the lower band of the Bollinger Bands and is heading upwards. The RSI is currently at 43.2% and suggests that the market can move in the upward direction. The current price is above the MA20.
TRADE SUGGESTION- LIMIT BUY AT 9.35 TAKE PROFIT AT 9.65 STOP LOSS AT 9.20