General Electric shares rebound on Monday, company confirms merger of GE Transportation with Wabtec

On Monday General Electric Company (GE) was reported to have confirmed the merger between its transportation unit and US rail industry equipment maker Wabtec Corp in a deal estimated at approximately $11.1 billion. The transaction is to be settled in early 2019, the companies said.

General Electric shares closed higher for the second time in the past five trading sessions on Monday. The stock went up 1.94% ($0.29) to $15.26, after touching an intraday high at $15.55, or a price level not seen since February 5th ($15.63).

In the week ended on May 20th the shares of the industrial conglomerate added 2.53% to their market value compared to a week ago, which marked a second consecutive period of gains.

The stock has extended its advance to 8.46% so far during the current month, following a 4.38% surge in April. The latter has been the first monthly gain since February 2017.

For the entire past year, General Electric shares plunged 44.78%, following a 1.44% increase in 2016.

Under the terms of the deal, General Electric is to receive a cash up-front payment of $2.9 billion, while its shareholders are to have a 50.1% stake in the merged company. The remaining 49.9% will be owned by Wabtecs shareholders.

Raymond Betler, Wabtecs Chief Executive Officer, is expected to keep the role of CEO and President of the merged company. At the same time, Albert Neupaver, Chairman of Wabtec Corps Board of Directors, has been re-appointed as Executive Chairman of the combined company.

Meanwhile, Rafael Santana, who heads General Electrics transportation unit, has been appointed as CEO and President of Wabtec’s Freight Segment.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Electric’s stock price, have a median target of $15.50, with a high estimate of $27.00 and a low estimate of $11.00. The median estimate is a 1.57% surge compared to the closing price of $15.26 on May 21st.

The same media also reported that 11 out of 17 surveyed investment analysts had rated General Electric’s stock as “Hold”, while 4 – 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 – $15.29
R2 – $15.32
R3 (Range Resistance – Sell) – $15.36
R4 (Long Breakout) – $15.45
R5 (Breakout Target 1) – $15.56
R6 (Breakout Target 2) – $15.61

S1 – $15.23
S2 – $15.20
S3 (Range Support – Buy) – $15.16
S4 (Short Breakout) – $15.07
S5 (Breakout Target 1) – $14.96
S6 (Breakout Target 2) – $14.91

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

Central Pivot Point – $14.92
R1 – $15.29
R2 – $15.60
R3 – $15.97
R4 – $16.33

S1 – $14.61
S2 – $14.24
S3 – $13.93
S4 – $13.61