Shares of General Dynamics (GD) have become less dynamic during a period of seasonal strength for the stock market.
This first chart of GD, above, shows it has made little upside progress this year. Prices and the On-Balance-Volume (OBV) line peaked in August. Prices made a low in September. They came back in October, but failed to break above the August highs. GD sold off again in November, and made a lower high in early December. As the rest of December unfolded, prices broke below the flat 50-day and 200-day moving averages. The OBV line has mirrored the price action, and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line.
This second chart of GD, above, shows the price trend of GD has turned neutral as judged by the flat 40-week moving average. The OBV line is flat and doesn't foreshadow price strength. Meanwhile, the MACD oscillator has a downward trend of more than a year, and could soon cross the zero line. With a weak technical picture, traders should consider selling GD at current levels and shorting it on a break below $135.