GD - General Dynamics Corporation Fri 13'th Jan 2017
Strong Buy Candidate
Stock analysis for Fri 13'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-10
General Dynamics Corporation Stock Analysis
General Dynamics Corporation gained 0.78% in the last trading day rising from, USD 176.52 to USD 177.89. The price has risen in 7 of the last 10 days days and is up by 2.7% over the past 2 weeks. Volume fell in the last day by -322 781 shares and ,in total, 952 936 shares bought and sold for approximately USD 170 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
General Dynamics Corporation lays in the lower part of a wide and strong rising trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at USD 174.70 will firstly indicate a slower raising rate, but may also be a early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 19.6% during the next 3 months and, with 90% probability will hold a price between USD 209.01 and USD 230.87 at the end of this period.
Only positive signals in the chart today. General Dynamics Corporation holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 176.79 and USD 175.17. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday December 30, 2016, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
RSI14 is 63 and the stock is currently not being overbought or oversold
Support & Resistance
General Dynamics Corporation finds support from accumulated volume at USD 173.74, USD 166.51, and USD 162.09. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 178.09, USD 178.43 and USD 178.52.
The stock is about to test the resistance from accumulated volume at USD 178.09 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day the stock moved USD 1.67 between high and low, and this equals 0.95%. For the last week, the stock has had a daily average volatility of 1.50%.
Our recommended stoploss: USD 171.29 (-3.71%) ( criteria: risk and closeness to support from trendline.)
General Dynamics Corporation holds several positive signals and are within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at current levels and are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.