General Electric shares retreat for a second straight session on Wednesday, company affirms $2 EPS objective for 2018

The DJIA-featured General Electric Company announced yesterday that it once again forecast strong earnings growth during the upcoming two years, in spite of current energy market weakness. The company affirmed its 2018 objective of earnings per share at the amount of $2, which slightly outstripped the median forecast by experts.

General Electric shares closed lower for a second consecutive trading session on Wednesday, while marking their steepest daily loss since November 30th. The stock went down 0.76% ($0.24) to $31.50, after falling to as low as $31.44 during yesterdays session, or a level not seen since December 9th. In the week ended on December 11th General Electric shares gained 1.40% compared to a week ago, following a 0.32% retreat in the preceding period. The stock has trimmed its advance to 2.41% so far during the current month, after climbing 5.70% in November. The latter has been the stock’s best performance since March this year. Back then General Electric shares appreciated 9.09%.

The company now projects that its earnings per share will probably be within the range between $1.48 and $1.52 in 2016 and within the range between $1.60 and $1.70 in 2017.

Jeff Immelt, General Electrics Chief Executive Officer, said the NYSE-listed company will sell its industrial solutions businesses as well as its water business by the end of H1 2017, while projecting a net revenue of $4 billion. The companys forecast of its 2017 revenue now points to $135 billion, which exceeds market consensus of $122.72 billion.

In regard to the Presidential Election in the United States and President-elect Donald Trumps proposed reforms, GEs Immelt said it was essential for his company “to be able to explain the difference between globalization and outsourcing.”

“Over the last 15 years, 85 percent of our gas turbines and jet engines have been sold outside the United States,” Immelt noted, cited by Reuters. “Thats globalization today.”

As far as General Electrics 3D printing business is concerned, an output of up to 500 parts is expected by the year 2020, up from 15 parts in projected output for 2017. At the same time, manufacturing costs are expected to be reduced by $3 billion.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the General Electric stock are presented as follows:

R1 – $31.55
R2 – $31.60
R3 (Range Resistance – Sell) – $31.65
R4 (Long Breakout) – $31.80
R5 (Breakout Target 1) – $31.97
R6 (Breakout Target 2) – $32.04

S1 – $31.45
S2 – $31.40
S3 (Range Support – Buy) – $31.35
S4 (Short Breakout) – $31.20
S5 (Breakout Target 1) – $31.03
S6 (Breakout Target 2) – $30.96

By using the traditional method of calculation, the weekly levels of importance for General Electric Company (GE) are presented as follows:

Central Pivot Point – $31.54
R1 – $32.16
R2 – $32.53
R3 – $33.15
R4 – $33.76

S1 – $31.17
S2 – $30.55
S3 – $30.18
S4 – $29.80