GIS runs into sellers around 54.72 for the third day in a row
General Mills Inc. (GIS) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
GIS ended Thursday at 54.33 gaining $0.56 (1.04%), outperforming the S&P 500 (0.25%). Trading up to $0.46 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 prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GIS as at Aug 15, 2019):
Thursday's trading range has been $1.21 (2.24%), that's above the last trading month's daily average range of $0.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GIS. Prices continued to consolidate within a tight trading range between 53.51 and 54.73 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on August 7th, GIS gained 2.08% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 53.51 earlier during the day, the market bounced off the key technical support level at 53.64 (S1). The failure to close below the support might increase that levels significance as support going forward. Unable to break through the key technical resistance level at 54.48 (R1), the share closed below it after spiking up to 54.72 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. General Mills ran into sellers again today around 54.72 for the third trading day in a row after having found sellers at 54.63 in the prior session and at 54.73 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 54.73 where further buy stops could get triggered. With prices trading close to this year's high at 54.74, upside momentum might accelerate should GIS be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for General Mills. Out of 104 times, GIS closed higher 60.58% 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 52.88% with an average market move of 0.56%.