GD - General Dynamics Corporation Mon 27'th Feb 2017
Strong Buy Candidate
Stock analysis for Mon 27'th Feb 2017 (Updated daily)
Buy candidate since 2017-02-24
General Dynamics Corporation Stock Analysis
General Dynamics Corporation gained 0.41% in the last trading day, rising from USD 189.63 to USD 190.40. , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 9 of the last 10 days days and is up by 3.25% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and, in total, 0.46 million more shares were traded than the day before. In total, 1.60 million shares bought and sold for approximately USD 306 million.
General Dynamics Corporation lies in the upper part of a weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at USD 192.60 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 8.4% during the next 3 months and, with 90% probability hold a price between USD 195.86 and USD 208.76 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 189.37 and USD 182.10. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday February 09, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
The stock holds a RSI14 at 81 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
General Dynamics Corporation finds support from accumulated volume at USD 185.14, USD 174.41, and USD 173.74. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of 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 2.62 (1.39%) between high and low. For the last week, the stock has had a daily average volatility of 1.35%.
The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stoploss: USD 181.67 (-4.59%) ( criteria: risk and position in trend)
General Dynamics Corporation holds several positive signals and is within a weak 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 Hold/Accumulate to a Strong Buy Candidate.