GIS closes lower for the 2nd day in a row
General Mills Inc. (GIS) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GIS finished the week -1.37% lower at 53.44 after losing $0.12 (-0.22%) today, underperforming the S&P 500 (0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GIS as at Jul 12, 2019):
Friday's trading range has been $0.77 (1.44%), that's below the last trading month's daily average range of $1.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GIS.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on December 10, 2018, GIS gained 0.49% on the following trading day.
Prices are trading close to the key technical support level at 52.82 (S1). Prices are trading close to the key technical resistance level at 53.88 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 52.82 where further sell stops could get triggered. As prices are trading close to July's low at 52.68, downside momentum might accelerate should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for General Mills. Out of 282 times, GIS closed higher 51.06% 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 10 trading days, showing a win rate of 59.57% with an average market move of 0.44%.