General Electric shares fall for a seventh straight session on Thursday, complete break-up may not occur, spin-off more likely, CNBC reports

June 22, 2018 7:08 am

According to CNBC’s David Faber, General Electric Company (GE) may not break up completely, but yet, it may announce something significant about its future at the end of June.

General Electric shares closed lower for a seventh consecutive trading session in New York on Thursday. The stock went down 0.93% ($0.12) to $12.76, after touching an intraday low at $12.61, or a price level not seen since July 29th 2009 ($12.11).

Shares of General Electric Company have retreated 26.88% so far in 2018 compared with a 2.85% gain for the underlying index, S&P 500 (SPX).

In 2017, General Electric’s stock plummeted 44.78%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

“I think we can expect to see GE make some kind of significant statement about the future of the company by the end of the second quarter, as they said they would”, CNBC’s Faber said on Squawk on the Street.

Faber said the company might not face a complete break-up, as some expectations had pointed. However, he noted that it could be a “significant announcement around reorganization of the company, including potentially something being spun.”

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $15.50, with a high estimate of $27.00 and a low estimate of $11.00. The median estimate represents a 21.47% upside compared to the closing price of $12.76 on June 21st.

The same media also reported that 11 out of 18 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the General Electric stock are presented as follows:

R1 – $12.78
R2 – $12.80
R3 (Range Resistance – Sell) – $12.82
R4 (Long Breakout) – $12.88
R5 (Breakout Target 1) – $12.94
R6 (Breakout Target 2) – $12.97

S1 – $12.74
S2 – $12.72
S3 (Range Support – Buy) – $12.70
S4 (Short Breakout) – $12.64
S5 (Breakout Target 1) – $12.58
S6 (Breakout Target 2) – $12.55

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $13.58
R1 – $13.86
R2 – $14.42
R3 – $14.70
R4 – $14.98

S1 – $13.02
S2 – $12.74
S3 – $12.18
S4 – $11.62

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