General Electric with cardinal changes in leadership, how to position yourself

One of the worst performing companies on Wall Street, General Electric has taken a bold move by removing John Flannery from his post as CEO. After only a year of work, the board of directors set up former CEO Lawrence Culp as his deputy.

The news has had a strong positive impact on the company's shares, with the opening opening up 13% to $13.07.

Removing Flannery was due to the disappointment of the board, stemming from the slow pace of change in the company, and not the loss of $23 billion. in GE's energy business.

How do we position our current prices?

Despite good news for the company, the trend remains short. The development options from here on are two. If the price fails to fill the gaps, we will likely see more purchases and a subsequent consolidation period. The change in company management is a fact, but the problem in the energy business remains. If the price goes below the bottom formed last week, negativism will increase and we are more likely to see deepening the correction. Entry with long current prices is unsatisfactory despite good news. Shorts seem to be the most suitable SL trade over the local top - $13.56. In terms of indicators, the CCI14/50 combination indicates that the medium-term trend remains short with a probability of corrective upward movement. 50 and 200SMA have been placed in the bear, with the price failing to establish permanently over the 50-year period - Short Trend remains in force.

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