General Mills Inc. (GIS) seems to have fallen out of favor by investors as prices have weakened significantly from their mid-2016 peak around $72. Prices have made a number of downside price gaps the past year telling you that sellers have been aggressive and that prices are likely to trend still lower in the months ahead. I wrote about GIS in the middle of May and suggested that "GIS looks poised for some price recovery - perhaps a rally to the $46-$48 area in the next few weeks. This will be part of a basing pattern." Prices did recover into the $46-$48 area but they have turned down again. The price improvement looks to be temporary.
In this daily bar chart of GIS, below, we can see that prices are below the declining 200-day moving average line. Prices have retraced half of their May-June recovery and are holding (for now) above the flat 50-day moving average line. The daily On-Balance-Volume (OBV) line declined from January to early June and then recovered slightly. It won't take much selling to push the OBV line to a new low. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In this weekly bar chart of GIS, below, we can see a small bounce the past three to four weeks. Prices are below the declining 40-week moving average line. The weekly OBV line makes a temporary bounce and has weakened the past two weeks. The MACD oscillator crossed to the upside in early June to signal a cover shorts signal but this could become a false move.
In this Point and Figure chart of GIS, below, we can see a downside price target of $41.31 being projected.
Bottom line: GIS looks like it made a temporary bounce and should retest the May lows. I do not see any technical reasons for these lows to hold so traders should be prepared for the possibility that new lows could be made.