General Mills ( GIS) is expected to report their latest quarterly figures Tuesday morning. I am done with breakfast so let's take a couple of minutes to check on the charts.
In this daily bar chart of GIS, below, we can see that this month prices broke out over the highs of May and June. GIS is trading above the rising 50-day moving average line as well as the rising 200-day line. Trading volume has been strong since September telling us that more investors and traders have been attracted to the stock.
The On-Balance-Volume (OBV) line shows a rising pattern from early March. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.
In this weekly Japanese candlestick chart of GIS, below, we can see that prices have broken out over the highs of 2020 in addition to the highs of 2021. GIS is trading above the rising 40-week moving average line.
The weekly OBV line has been strong the past four months or so and confirms the price gains. The MACD oscillator is bullish.
In this daily Point and Figure chart of GIS, below, we can see that the software has determined a potential upside price target in the $75 area.
In this weekly Point and Figure chart of GIS, below, we see a price objective in the $95 area.
Bottom line strategy: The last time we looked at GIS was on June 28 where we recommended avoiding the long side ahead of earnings. This time around the charts of GIS are strong and could be bought. Weakness in the broad market may give us a buying opportunity. Risk to $64.50.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
The bears are absolutely convinced that this market move is unjustified -- but what we're seeing has very little to do with fundamentals or the economy.
Caterpillar can move earth, but can it move its charts in the right direction?
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
Email sent
Thank you, your email to has been sent successfully.