GIS closes above its opening price after recovering from early selling pressure
General Mills Inc. (GIS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GIS finished the month -2.2% lower at 61.65 after gaining $0.91 (1.5%) today, slightly underperforming the S&P 500 (1.54%) ahead of Wednesday's earnings report. Trading up to $1.03 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, GIS actually lost -1.86% on the following trading day. 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 Jun 30, 2020):
GIS is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.03 per share. The company's last earnings report was released on March 18, 2020, when General Mills Inc. reported earnings of $0.77 per share topping market expectations by 2.7%.
Tuesday's trading range has been $1.41 (2.3%), that's slightly below the last trading month's daily average range of $1.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GIS.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
General Mills managed to close back above the 50-day moving average at 60.99 for the first time since June 23rd.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 64.31, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for General Mills. Out of 106 times, GIS closed higher 63.21% 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 56.60% with an average market move of 0.56%.