On Nov. 24 we wrote: "General Mills (GIS) has been stuck in a $54 to $60 range since April. The 200-day moving average is still positive, but the 50-day average has been 'whipsawed' with the sideways range. On the bear side of the ledger, the On-Balance-Volume (OBV) line peaked in October. GIS would break out on the upside with a close above $60, but a close below $55 is likely to tip the scales to the downside."
In the updated daily chart of GIS, above, we can see that it dipped below $55 in January, but failed to break down and reversed to the upside in February. In March GIS broke out above $60. GIS tacked on nearly 10% on its advance to near $66 before falling back to $60 one more time. From an April low GIS has pushed up again to new highs. The On-Balance-Volume (OBV) line is rising, confirming the price strength. Prices are above the rising 50-day and 200-day moving averages.
In the weekly chart of GIS, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is pointed up and the Moving Average Convergence Divergence (MACD) is bullish. Unless whipsawed again, GIS looks like it can rally further to around $70.
