General Electric Company (GE) - Get Report  traded at new 2017 lows Tuesday following news that Warren Buffett has exited his position in the stock. This breakdown could usher in a new leg lower for a stock that is already down more than 20% year-to-date. In the near term, GE investors should keep a close eye on the $25 area. There is very little support for the stock below the lower band of a major support zone that has held in quite well since a nasty post-earnings breakdown back on July 21.

GE was already reeling prior to its mid-July earnings report. The stock fell over 2.9% on July 21, its worst one-day decline since September 2016. GE began that session with a huge downside gap as selling pressure jumped to its highest level of the year. Despite this powerful selloff, further downside was very limited. GE held in extremely well near the major breakout gap left behind back in October of 2015. The stock has been basing near this zone since and is desperately trying to hold this level again this week.

With the stock in oversold territory as the $25 area holds, patient investors should remain positive. If GE can continue to base here in the face of Tuesday's negative news, a bottom -- possibly a significant one -- could be in. There is no rush to buy now. Patient investors should wait for the dust to settle and a proven low is in place. If selling pressure remains light through the week, GE will look quite exhausted to the downside.

General Electric is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells GE?Learn more now.

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At the time of publication, the author was long GE.