GE Finally Stabilizing After Post-Earnings Slide

General Electric Company GE shareholders have had a rough go of it since the stock reached its highest point since 2008 on July 20. After peaking at $33.00, GE pulled back a bit ahead of a disappointing Q2 earnings report on July 26. Since then, shares have dipped as low as $31, but GE seems to have finally found some buyers.

If it continues to hold, $31 could serve as a key technical support level looking forward. GE’s 50-day simple moving average (SMA) currently sits at $31.11 and its 200-day SMA rests at $29.90. While the stock has dipped below its 50-day SMA on several occasions in 2016, the 200-day SMA has served as strong support for the stock since October of 2015.

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Even during January’s huge market selloff, GE never closed below its 200-day SMA.

If $31 holds in coming days, look for GE to take another run at $33, or even make a longer-term push toward 2008 highs above $40. However, a breakdown below $31 doesn’t necessarily mean the stock is a sell, especially if it stays above its 200-day SMA.

GE stock has lagged so far in 2016, delivering a year-to-date return of -0.1 percent. However, its longer-term technical picture looks much more positive, and GE is up 19.2 percent in the past 12 months.

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Disclosure: The author holds no position in the stocks mentioned.