General Electric (GE) has seen its share price heavily sell-off this year as investors try to make sense of its long-term strategic plan. The price has declined to a point of long-term support, meaning value buyers could soon enter the market. Moreover, GE's share price has severely underperformed the S&P 500 over the last decade, pushing it to its lowest relative valuation in the last 40 years. With new management coming into place, GE could begin to focus on its strongest operating areas. Due to the magnitude of sell-off GE has experienced, there are some interesting trade ideas to play a pullback in share price if optimism improves.
Price Action
The price action below is beginning to look interesting after months of selling pressure. Below is a weekly chart of GE, spanning back to 2010. Since early 2016, GE's share price has slowly rolled over, with accelerated selling pressuring occurring throughout 2017. The price currently trades at a strong level of support however. Since 2014, GE has found support around $24, with subsequent buying pressure in the years following. Although GE has not put in a definitive bottom at current levels, selling pressure has momentarily stopped, signaling the support range is still valid.
