General Dynamics’ next move is to new heights

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Shares of General Dynamics (GD) have traded sideways over the past two months, but the stock looks set to break out higher. Let’s check the graphics to see if it’s a good time to enter.

In GD’s daily bar chart, below, we can see that stocks are trading sideways after a rally in early November. This price movement looks like a normal correction in a continuing uptrend. Prices are trading around the 50 day moving average line.

The trading volume decreased and the On-Balance-Volume (OBV) line decreased slightly, which is typical of a consolidation model. The Moving Average Convergence Divergence Oscillator (MACD) has declined since early April, indicating that the strength of the trend has weakened. The MACD Oscillator is just slightly above the zero line and very narrow.

In GD’s Japanese weekly candlestick chart, below, we don’t see any upper reversal pattern. Prices are above the rising 40 week moving average line.

The weekly OBV line shows a slight drop in May and June. The MACD Weekly Oscillator moved lower for a sell signal for profit taking.

In this daily points and numbers chart from GD, below, we can see a potential price target upward in the $ 213 area.

In this weekly dot and number chart from GD, below, we can see that the software is projecting a price target of $ 291.

Result strategy: GD charts and indicators suggest we should see some bullish movement soon. Traders could take a long position in GD at current levels, risking at $ 180. Our first price target is $ 213.

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