General Electric shares gain for a third session in a row on Friday, company takes a step further to selling its industrial unit to ABB

According to people familiar with the matter, cited in a Bloomberg post on September 22nd, General Electric Company (GE) has taken a step closer to selling its industrial solutions unit to ABB Ltd, a Swiss engineering company, for an estimated amount of $2.5 billion to $3 billion. An agreement is likely to be announced by the end of next week.

General Electric shares closed higher for a third consecutive trading session on Friday. The stock went up 0.48% ($0.12) to $24.87, after touching an intraday high at $25.03, or a price level not seen since September 5th ($25.06). In the week ended on September 24th the shares of the industrial conglomerate added 3.93% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on November 13th. The stock has extended its advance to 1.30% so far during the current month, following a 4.14% slump in August. The latter has been a sixth consecutive month of losses. For the entire past year, General Electric shares gained 1.44%. The stock has retreated 21.30% so far in 2017.

Negotiations over the sale of General Electrics industrial solutions division were resumed after CEO John Flannery decided to continue divestiture of non-core assets.

Reuters reminded that the industrial conglomerate had already reached an agreement to sell its industrial water treatment business to Suez SA and Caisse de dépôt et placement du Québec in a deal valued at EUR 3.2 billion.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $28.00, with a high estimate of $33.00 and a low estimate of $21.00. The median estimate is a 12.59% surge compared to the closing price of $24.87 on September 22nd.

The same media also reported that 8 out of 19 surveyed investment analysts had rated General Electric’s stock as “Hold”, and 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

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 – $24.89
R2 – $24.92
R3 (Range Resistance – Sell) – $24.94
R4 (Long Breakout) – $25.01
R5 (Breakout Target 1) – $25.10
R6 (Breakout Target 2) – $25.13

S1 – $24.85
S2 – $24.82
S3 (Range Support – Buy) – $24.80
S4 (Short Breakout) – $24.73
S5 (Breakout Target 1) – $24.64
S6 (Breakout Target 2) – $24.61

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

Central Pivot Point – $24.61
R1 – $25.29
R2 – $25.71
R3 – $26.39
R4 – $27.07

S1 – $24.19
S2 – $23.51
S3 – $23.09
S4 – $22.67