General Dynamics Corp. (GD) has been in a largely sideways trading range since February. Can GD break out on the upside in the weeks ahead or will the summer doldrums throw water on the bulls? Let's review the charts and indicators.
In this daily bar chart of GD, below, we can see a mixed picture between the price action and the technical indicators. Prices have been stuck in a $160-$180 or so trading range. GD is trading above the rising 50-day moving average line and above the still declining 200-day line.
Prices are holding just below the late April peak and the On-Balance-Volume (OBV) line is also below its April high. Sometimes the OBV line can lead the price action but right now it is not making a new high before prices and could be diverging.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and rising. A bullish setup.
In this weekly bar chart of GD, below, we can see that prices are above the declining 40-week moving average line.
Weekly trading volume has been declining but the OBV line has been rising from last June.
The MACD oscillator on this longer time frame is rising towards the zero line but it has not crossed yet.
In this Point and Figure chart of GD, below, we can see an upside price target of $206 being forecast. A decline to $168.38 could weaken the picture.
Bottom line strategy: Visually it looks like GD will breakout on the upside but some of the volume based indicators are not particularly bullish. GD might continue to trade sideways in the weeks ahead.