GE SPIKES AFTER CEO STEPS DOWN
General Electric is currently trading at 12.66-higher by about 12.33% as compared to the previous closing. General Electric was trading up to 16% higher before the market open on Monday. It has pared some of its earlier gains after the opening bell.
In recent news, General Electric CEO, John Flannery abruptly stepped down on Monday just over a year after taking the role as CEO. The stock has more than halved since John Flannery took the top job in August last year. GE had fallen to a nine-year low in the last week. According to market sources, the former CEO’s departure from GE is driven by “slow pace of change” under his leadership. The company announced on Monday that John Flannery will be replaced by H. Lawrence Culp Jr., who had the unanimous support of the board. The company further disclosed that it would fall short of its previously indicated guidance for free cash flow and earnings per share for 2018 due to weakness in its power business.
On the technical front, the RSI is currently at 56.53% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 12.55 TAKE PROFIT AT 12.85 STOP LOSS AT 12.40