Shares of General Dynamics (GD) have traded sideways the past two months, but the stock looks ready to make an upside breakout. Let's check the charts to see if this is a good time to enter.
In the daily bar chart of GD, below, we can see that the shares are trading sideways after a rally from early November. This price movement looks like a normal correction within a continuing uptrend. Prices are trading around the 50-day moving average line.
The trading volume has declined and the On-Balance-Volume (OBV) line has decreased slightly, which is typical for a consolidation pattern. The Moving Average Convergence Divergence (MACD) oscillator has declined since early April telling us that the strength of the trend has been weakening. The MACD oscillator is just slightly above the zero line and very narrow.