The GE share price is up by a massive 5.3% in premarket trading after the company surprised the markets by announcing it was splitting into three new companies that will focus on aviation, healthcare and renewable energy/power.
With this announcement, General Electric will end more than 100 years of history as a single entity. The splitting of the company will kick off in early 2023 with the healthcare business and end in early 2024 with its move to consolidate into renewable energy and aviation. The company will only retain a 19% stake in the new healthcare division but will keep its holdings in the emerging aviation and power companies.
The premarket surge in price looks set to target the 115.34 resistance level (8 March and 1 June highs). If the bulls take out this barrier, additional resistance comes in at 117.14 (14 May 2018 high) and 119.84 (21 May 2018 high).
On the flip side, rejection and a subsequent pullback from the 115.34 resistance will allow the bears to aim for the 110.76 support (5 April and 18 October highs). A further decline will bring in new downside targets at 109.74 and 106.99 (4 October and 2 November highs). Any additional decreases must take out the 200-day moving average, in which case the 102.01 price mark will become a new downside target.
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This post was last modified on Nov 09, 2021, 13:53 GMT 13:53