Solid News

Shares of General Electric Co., an American multi-industry corporation, are moving in an increasing correction at 86.00.

It became known yesterday that the company has become one of two applicants for purchasing rocket manufacturer Aerojet Rocketdyne Holdings Inc., estimated at 4.5B dollars. The possibility of this acquisition came to the issuer after the US antitrust regulator blocked a similar deal with another defense giant Lockheed Martin Corp.

The investment community received the company's financial report fairly positively, with revenue reaching 18.44B dollars, up 24.0% YoY, although earnings per share were 0.35 dollars, below the 0.47 dollars forecast. Despite this, chief executive Larry Culp was positive about the outlook for the corporation, noting that supply chain slowdowns are fading into the background, with jet engine deliveries to customers more than doubling since the second quarter.

The new dividend has yet to be scheduled, but it is unlikely to exceed the standard 0.08 dollars per share for this year, and the yield will remain at 0.45–0.55% per annum.

On the daily chart, the trading instrument is correcting above the resistance line of the local rising channel.

Technical indicators are in a buy signal but do not rule out a correction: fast EMAs of the Alligator indicator are holding above the signal line, and the AO oscillator histogram forms downward bars in the buying zone.

Resistance levels: 88.00, 94.00. | Support levels: 83.00, 76.30.