Reports of GE's death are greatly exaggerated, and the stock is going 'straight up,' according to one trader

Despite a glimmer of hope for General Electric shareholders over the past month as the stock has rebounded, the analyst who called the initial collapse is warning the worst isn't over yet.

Shares of the industrial giant were under pressure Tuesday after J.P. Morgan analyst Stephen Tusa warned investors of more "unfavorable" headwinds for the company as it heads into earnings later this month.

Tusa — who was one of the first analysts on the Street to put a sell rating on the stock in 2016 — changed his tune last month with an upgrade to neutral. The rare bullish rating sparked a surge in GE, and lifted by the broader market rally, the shares are now up more than 30 percent from the lows.

Matt Maley, equity strategist at Miller Tabak, said the stock is facing as key level as it rises just above its 100-day moving average, but the trend might not last. "I don't think we get back to the lows we saw back in December," he said Tuesday on CNBC's "Trading Nation.

"But I do think long-term buyers will be able to buy [GE] at lower prices over the next month or so."

"[GE is] getting overbought to the same degree that is has on several different occasions in the last two years, including kind of the key top in late 2016," he said. "Each time we've reached that level, it's rolled over."

Conversely, Michael Bapis, managing director, Vios Advisors at Rockefeller Capital Management, believes the fundamental picture behind GE is still intact.

"[GE] was hit hard by a sell anything December and probably tax-loss selling," he said on "Trading Nation." "We think this is a classic mispricing of a security." Bapis also suggested that although analysts believe the majority of GE's value lies within its health-care and aviation units, the calculation doesn't tell the whole story.

"It may not be straight up as it has in the past month, but we're long-term buyers of it and if you look at the valuations and the fundamentals, they point to straight up," he said.

Shares of GE are up nearly 18 percent so far this year.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

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.

Follow Michael Santoli on Twitter @michaelsantoli

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