General Electric: Short with trend, after bad Q3 financial results

20.10.2017 / 18:19

Rating:

General Electric's shares dropped sharply after the company posted revenue far worse than expected on Wall Street. Earlier today in an interview, John Flynn, CEO of the company, said cash flow was in a terrible state. The gap between the EPS and the expected reached 40%. The adjusted earnings for this year are expected to be $1.05/$1.10 per share, while Wall Street said the company would be able to reach $1.60/$1.70.

Technically, the stock price is in a downward trend, opening today with a gauge down. Currently correcting the initial downward momentum, and given the very poor foundation around the company, this gives us the opportunity for Short with the trend. The price breaks a long-term horizon with gap - a strong negative signal. 50SMA below 200SMA - Negative for the price.

SL: 24.56

Alternative Scenario: If the price goes back over the horizontal, diagonal, and dynamic resistance and is able to hold there, the negative scenario will break and we are more likely to see a raise.

Jr Trader Petar Milanov

Varchev Traders

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General Electric: Short with trend, after bad Q3 financial results

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