Buy Candidate
Fri 26'th May 2017

PERIOD COVERED
2017-02-27 - 2017-05-26
CHANGE
0.57%
PRICE
$202.24
VOLUME
Sell
TREND
Buy
MV LONG
Buy
MV SHORT
Buy
PIVOT
Buy
MACD
Sell
Request Prediction
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General Dynamics Corporation Stock Analysis

Technical stock analysis for Fri 26'th May 2017

Buy candidate since 2017-05-18 Gain 4.98%

General Dynamics Corporation gained 0.57% in the last trading day, rising from USD 201.09 to USD 202.24 , and has now gained 8 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. The price has risen in 8 of the last 10 days and is up by 3.4% over the past 2 weeks. Volume fell in the last day by -371 074 shares, and in total, 751 108 shares bought and sold for approximately USD 152 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.

Trend

General Dynamics Corporation has broken the narrow and weak rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at USD 199.78, a level that may pose a second chance to hit a runner. According to fan-theory USD 209.1 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

Signals

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 198.41 and USD 193.38. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday May 17, 2017, 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 67 and the stock is currently not being overbought or oversold

Support & Resistance

General Dynamics Corporation finds support from accumulated volume at USD 192.41, USD 187.20, and USD 185.49. 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.

Risk

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 1.73 (0.86%) between high and low. For the last week, the stock has had a daily average volatility of 1.38%.

Since the General Dynamics Corporation has been rising for 8 days in a row, the risk for the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Our recommended stoploss: USD 194.30 (-3.92%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 7 days ago.)

Evaluation

Several short-term signals, along with a general good trend, are positive and the stock has broken the rising trend up, which indicates an even stronger rising rate. We can conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term period. Due to a possible false trend-break a pure Buy Recommendation is held back. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.

Buy Candidate

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