The Dow’s oldest stock is looking ‘so bad, it’s good,’ according to one technician

General Electric is not only the Dow's oldest component but also its biggest laggard this year. That could be about to change, however, thanks to what Craig Johnson is seeing in the charts.

According to the Piper Jaffray technical analyst, General Electric is retesting its 2015 lows at around $23, a level that Johnson believes to be a key "support" level for the stock from which it could rally.

"Under the context 'it's so bad, it's good,' this is a key support level, and you may find the bounce here," he said Thursday on CNBC's "Power Lunch."

However, Johnson cautions against buying GE at these levels despite the stock hitting support. "I'm going to wait for that bounce before I step up and buy it at these levels."

Larry McDonald, managing director at ACG Analytics, is certainly betting on such a bounce, thanks to two main upcoming events. In addition to being positive on the company's electric charger space, McDonald is also eyeing the company's earnings report on Friday and its investor day in November.

"With those two events, I think the stock bottoms here and runs substantially toward those events," he said.

GE is currently down 25 percent year to date, while the Dow traded near all-time highs on Thursday, up 17 percent this year.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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