Shares of General Electric Co (GE) are falling sharply again today. This is coming after the company announced some questionable business decisions and a possible reverse stock split. As an investor, the reverse stock split is the worst possible idea for any company and the main reason for the stock price decline. A company usually announces a reverse stock split when they are going to issue more shares, raise capital or need to keep their share price above $1.00 to continue being listed on an exchange like the NASDAQ. While this is not the case with General Electric, it does wave the white flag and say that management does not believe they can build the company back up to get the shares price higher on their own. Essentially, they are telling investors that the only way the stock price is going higher is if they do this reverse stock split. It is a horrible idea. Ultimately, I do not believe they will go through with it, but the selling pressure is no doubt from that.
When looking at General Electric technical analysis, there is a major support at the $11.65 level. This is where swing traders should grab it for a bounce. The technical level is a major pivot on the daily chart from January 21st, 2021 as well as a gap fill from February 18th, 2021. Lastly, the daily 50 moving average is also in that range. The triple threat of technical support factors gives swing traders the high probability of a strong bounce and profits.