Braking Out
Despite of the “shenanigan” move back in late August, General Mills (GIS) still looking solid for the rest of the year and next year.
Looking at the longer term perspective on the weekly-chart below, we can see that the uptrend has not been broken as it continues to cultivate higher-lows and higher-highs. Weekly-100SMA has been a key moving average as it has been a ‘guardian angel’ for this stock since 2010; you can probably use this moving average as a long-term indicator. As long as it stays above the weekly-100SMA, the primary uptrend is assumed to be in effect. Recent price-action is very similar to the move back in 2013 (see green arrows) before it took off as we have retested the old-resistance as new-support last few months. We could see a strong-bullish rally from here on.
Weekly Chart
Our Holdings
August 24th, we saw a massive panic in the overall market and it effected General Mills (GIS) as well as you can see the long lower wick. This is the reason why we incorporate Two Parts Trigger System for our stops to make sure we don’t get caught up in that kind of head-fakes. Since then, for about two months it consolidated, before, finally, breaking out today. We’ve added more to our holdings earlier this morning when it gaped up above the pivot level of $57.30ish which we identified as “jump start” move.
Our targets are $62, $65 and $67 price-level
Daily Chart
