GE plans to double cost reductions in the oil and gas business to fight the effects of low oil prices and slow global growth that pounded its earnings last year.
The restructuring measures include consolidating factory and service-center real estate, improving supplier relationships, making plants more efficient and reducing overhead and product costs.
Since the beginning of the year the company stock plunged more than 7.5% and last week fell more than 2.0%.
Last week the stock initially fell but found enough buying pressure to trim some of its losses and close in the middle of the weeks range, in addition managed to close within the previous week range, suggesting a potential consolidation on the weekly support.
The RSI is showing a week bearish momentum and is crossing below the 50 mid line.
The Company is in a well-established warning phase since the beginning of January 2016 plus continues to close above the 50 and 200 week moving averages.
Expecting an upward move to a weekly resistance at 30.73 on a break above the previous week high at 28.98 (scenario 1) or a break below the week support at 27.18 could push the stock down to a key level at 26,22 (scenario 2).