GIS ends the day on a bullish note closing near the high of the day
General Mills Inc. (GIS) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GIS ended the week 4.97% higher at 41.80 after gaining $0.38 (0.92%) today, outperforming the S&P 500 (-0.01%). Today's close at 41.80 marks the highest recorded closing price since November 30, 2018. Trading up to $0.37 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, GIS gained 2.47% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GIS as at Jan 11, 2019):
Friday's trading range has been $0.74 (1.79%), that's below the last trading month's daily average range of $1.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GIS.
After trading down to 41.08 earlier during the day, General Mills bounced off the key technical support level at 41.22 (S1). The failure to close below the support might increase that levels importance as support going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 39.03.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further buying could move prices higher should the market test December's nearby high at 42.34.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for General Mills. Out of 82 times, GIS closed higher 59.76% of the time on the next trading day after the market condition occurred.