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

Highlights

GIS rises to highest close since November 30, 2018
GIS closes above its opening price after recovering from early selling pressure
GIS finds buyers at key support level
GIS closes higher for the 2nd day in a row
GIS ends the day on a bullish note closing near the high of the day

Overview

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):

Daily technical analysis candlestick chart for General Mills Inc. (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.


Market Conditions for GIS as at Jan 11, 2019

Loading Market Conditions for GIS (General Mills Inc.)...
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