• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Staples

General Mills' Correction Has Probably Run Its Course

The charts are looking more favorable for the cereal maker.
By BRUCE KAMICH
May 10, 2017 | 03:30 PM EDT
Stocks quotes in this article: GIS

General Mills (GIS) peaked back in July and has been under selling pressure for the past nine months. Prices are below the declining 50-day moving average line and the declining 200-day moving average line. The On-Balance-Volume (OBV) line has been weak since early September and suggests that sellers have been more aggressive for months. See the chart below.

While the current condition of GIS looks weak, our favorite leading indicator -- momentum -- has been making a bullish divergence. As prices made lower lows from March to May the momentum has made equal lows. This difference in price action versus indicator is a bullish divergence and can foreshadow higher prices ahead.

In this weekly chart of GIS, below, we can see that prices are below the declining 40-week moving average line. The OBV line is weak and has made a new low for the move down. The weekly MACD oscillator is below the zero line but poised for a cross to the upside. A cover shorts buy signal from the MACD could help in a turnaround for GIS.

In this point and figure chart of GIS, below, we can see that the $56 level is a support zone.

Bottom line -- GIS looks "played out" on the downside. It could take a while for GIS to bottom and try the upside but for now the downside seems limited.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Investing | U.S. Equity | Consumer Staples | Stocks

More from Consumer Staples

My Top Stock Pick for 2021

Ed Ponsi
Dec 31, 2020 8:30 AM EST

Even after a solid 2020, this company has laid the groundwork for a successful 2021.

With Dividend Investing En Vogue, Here Are 4 More Stocks to Consider

Chris Versace
Dec 22, 2020 10:00 AM EST

The consistent annual dividend increases by this quartet even during bad times make them good income-investing bets going forward.

2 Food Stocks Worth Digging Into for Dividend-Hungry Investors

Chris Versace
Dec 3, 2020 11:00 AM EST

Long histories of annual dividend increases make Hormel Foods and McCormick & Co. attractive income plays.

Snack Maker Utz Brands Could Be a Stock to Dip Into Based on Its Charts

Bruce Kamich
Nov 24, 2020 8:42 AM EST

There is a limited price history with the company, which went public in August, but aggressive traders could probe its long side.

Pandemic Should Help This Cereal Maker Remain a Serial Dividend Payer

Chris Versace
Sep 27, 2020 8:15 AM EDT

Food company General Mills is benefiting as more consumers work from home and dine out less.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I'll discuss price targets in my Saturday column.
  • 07:54 AM EST GARY BERMAN

    Friday Morning Fibocall for 1/22/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login