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General Electric gets crushed, and there could be more weakness to come

April 09
09:59 2019

General Electric is on its worst losing streak of the year.

Its shares tumbled more than 5 percent Monday, its fourth session in the red and its longest stretch of losses since December.

The charts are sending a clear signal to Ari Wald, head of technical analysis at Oppenheimer.

“The technicals are saying to sell it,” Wald said Monday on CNBC’s “Trading Nation. ” “This is a stock we’ve been bearish on for a while and we’re still bearish on and recommend selling.”

J.P. Morgan analyst Stephen Tusa is also bearish. His downgrade to sell set off GE’s plunge Monday, its deepest drop since early December. Tusa also cut his price target to $5 from $6.

Wald said one technical indicator suggests more downside to come for GE.

“What’s notable about [Monday’s] weakness is that it’s occurring below the bearish slope of the stock’s 200-day moving average,” said Wald. “What this is showing is that the near term is lining up with the long-term weakness. We see this as a resumption of GE’s long-term downtrend.”

Monday’s sell-off aside, GE has outperformed the market this year. It has roared 48 percent higher off its Dec. 11 bottom and roughly doubled the gains seen across the broader market.

Continue Reading at CNBC

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