GIS unable to break through key resistance level
General Mills Inc. (GIS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, GIS finished the week 2.72% higher at 53.31 after gaining $0.32 (0.6%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GIS as at Feb 14, 2020):
Friday's trading range has been $0.72 (1.35%), that's slightly below the last trading month's daily average range of $0.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GIS.
One bearish candlestick pattern matches today's price action, the Shooting Star.
The share managed to close back above the 20-day moving average at 53.07 for the first time since January 30th. When this moving average was crossed above the last time on January 30th, GIS actually lost -2.81% on the following trading day. Unable to break through the key technical resistance level at 53.65 (R1), the market closed below it after spiking up to 53.77 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
While General Mills is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's high at 54.57, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for General Mills. Out of 49 times, GIS closed higher 53.06% 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 63.27% with an average market move of 0.87%.