General Dynamics (GD) has been in a sweet spot from before the election results, turning up from near $120 at the beginning of 2016. The charts and indicators have been checked out by the flight crew and are headed still higher.
In this one-year daily bar chart of GD, below, we can see a rally in April and May followed by a downward correction. In July and August there is another rally that is followed by a sideways correction (versus downward). In November and December there is another rally but this is followed by a rising correction. Notice the difference?
GD is above the rising 50-day moving average line and the rising 200-day moving average. The On-Balance-Volume (OBV) line has moved up with the price for much of the past 12 months. A rising OBV line is a good indication of accumulation and aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the past year and is in a bullish configuration.
In this three-year weekly chart of GD, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has risen with prices the past three years and the weekly MACD oscillator is very bullish.
Bottom line: From 2014 to into 2016 GD traded back and forth around the $140 level. It would not be a big surprise to see GD double from this large consolidation pattern. A double of $140 would give us $280 as an upside target. I would risk below $180 for new longs.