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  1. Home
  2. / Investing

General Mills Makes a Big Upside Breakout

Weakness in the broad market may give us a buying opportunity.
By BRUCE KAMICH
Dec 20, 2021 | 12:00 PM EST
Stocks quotes in this article: GIS

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.
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TAGS: Investing | Stocks | Technical Analysis | Trading | Food & Staples Retail | Consumer Products | Earnings Preview

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