General Dynamics (GD) made a rolling top formation last year.
In the chart of General Dynamics, above, you can see that prices started down in earnest in December. Prices broke key support at $135 in January and now returned to the scene of the crime. Also note the August peak in the On-Balance-Volume (OBV) line and the death cross in January with the 50-day average declining to the 200-day moving average.
The longer-term chart of General Dynamics, above, makes the top formation easier to see. Prices are below the declining 40-week moving average and the Moving Average Convergence Divergence (MACD) oscillator is bearish.
Traders should use this return move to the former breakdown area around $135 to liquidate longs and/or go short. Traders can do additional selling on a decline below the $125 level. The $110 and then $100 area are our longer term downside price objectives for General Dynamics.