GIS closes within prior day's range
General Mills (GIS) Technical Analysis Report for Oct 12, 2018
GIS finished the week -0.9% lower at 43.10 after gaining $0.25 (0.58%) today, underperforming the S&P 500 (1.42%). Trading up to $0.59 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GIS as at Oct 12, 2018):
Friday's trading range has been $0.79 (1.84%), that's slightly below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GIS.
After moving lower in the previous session, General Mills managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on August 13th, GIS gained 0.73% on the following trading day.
After trading down to 42.44 earlier during the day, the market bounced off the key technical support level at 42.82 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 43.62 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for General Mills. Out of 51 times, GIS closed higher 58.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 62.75% with an average market move of 0.12%.