The deeply oversold conditions that have developed in General Electric  (GE - Get Report) of late are beginning to indicate the current downside move may be near exhaustion. At this week's low, the stock has fallen more than 12% from the June 12 spike high. This sharp decline, which has taken out multiple layers of support, has driven GE's weekly MACD indicator to its deepest oversold reading since late 2011. Considering the technical damage, a new base will take time to build, but patient investors should begin to take on a more positive view. 

In addition to an extremely oversold condition, GE has entered a key support zone. Back in early October 2015, GE exploded to the upside following the Peltz news. The stock opened that session with a huge upside gap with the help of a massive jump in volume. GE finished the session with a 5.3% gain, to date its biggest one-day gain. The powerful breakout gap left on the morning of October 5 has never been filled. 

In the near term, patient GE bulls should keep a close eye on the $26.00 to $25.00 area. This key zone should be viewed as a low-risk buy area until proven otherwise. If GE can regain its footing here as selling pressure continues to ease, an important base could begin to form. On the downside, a close below $24.00 would mean another support area has failed and the hunt for support continues.

GE's shares rose 0.1% to $26.41 early Wednesday afternoon.

General Electric is a holding in Jim Cramer's Action 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 General Electric.