General Electric (GE) - Get Report is working on its third straight day of losses. The stock is off nearly 1% on Thursday, and a significant top appears to developing near this week's high. More downside appears to be on the way, and with it a test of key support.
Despite Jeff Immelt's relatively positive investor presentation, GE is coming under increasing pressure on Thursday. This weakness began three days ago, as the stock was unable to finish in the green despite a big Dow Jones Industrial Average rally. GE was soft again on Wednesday, as selling pressure picked up.
Thursday's news-inspired drop is giving the $32 area, which capped the last five daily highs, an ominous look. As the stock drifts further below this resistance zone, overhead pressure is building.
In the near term, GE investors should keep a close eye on the $30.90 to $30.50 area. This zone is a key support area and includes the December low as well as the 200-day moving average. If the stock fails to garner bullish interest here, a much deeper pullback could be on the way.
Until then, GE may prove to be a frustrating long.
This article is commentary by an independent contributor. At the time of publication, the author was long GE.