General Mills ( GIS) has been a technical star for traders looking for long ideas since December. The shares have traded higher since bottoming back in August-September.
Let's check out the charts and indicators to see if the strength can continue.
In the daily bar chart of GIS, below, we can see how the shares have bounced off the rising 200-day moving average line -- in March, May and June. GIS is trading above the rising 50-day line. The trading volume has been increasing for months, telling us that the message of GIS has attracted attention from traders and investors.
The daily On-Balance-Volume (OBV) line has been strong the past 12 months to tell us that buyers of GIS have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of GIS, below, we can see the price gains from early 2020. The shares are trading above the rising 40-week moving average line.
The weekly OBV line shows strength from August 2021. The weekly MACD oscillator is pointed higher. The two most recent candle patterns are doji telling us there is a balance between bulls and bears. A white candle this week will refresh the uptrend. We're watching.
In this daily Point and Figure chart of GIS, below, we can see the rally in a different light and an upside price target of $98.
In this second Point and Figure chart of GIS, below, we used weekly price data and the same price target is revealed.
Bottom-line strategy: We recommended the long side of GIS in our June 30 review. Continue to hold those longs. The $98 area is our new price target.
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We are witnessing one of the most extreme disconnects in decades between the Nasdaq 100 and Russell 2000.
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