GENERAL MILLS INC is setting up nicely for a breakout.

GENERAL MILLS INC (NYSE:GIS) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:GIS.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to GIS. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, GIS is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that GIS is one of the better performing stocks in the market, outperforming 91% of all stocks. We also observe that the gains produced by GIS over the past year are nicely spread over this period.
• GIS is one of the better performing stocks in the Food Products industry, it outperforms 94% of 103 stocks in the same industry.
• GIS is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• GIS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

How do we evaluate the setup for NYSE:GIS?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:GIS currently has a 8 as setup rating:

GIS has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 76.37. Right above this resistance zone may be a good entry point.

Trading setups like NYSE:GIS

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout analyzer lists more breakout setups and is updated daily.