Thu 19'th Oct 2017
General Dynamics Corporation Stock Analysis
Technical stock analysis for Thu 19'th Oct 2017
Buy candidate since 2017-10-18 Gain 0.59%
General Dynamics Corporation lies in the middle of a weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 7.24% during the next 3 months and, with 90% probability hold a price between $217.45 and $230.41 at the end of this period.
Only positive signals in the chart today. General Dynamics Corporation holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $212.41. On a fall, the stock will find some support from the long-term average at approximately $205.77. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. A buy signal was issued from a pivot bottom point on Wednesday October 18, 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.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
RSI14 is 68 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $198.73 and $194.66. On the upside the stock meets some resistance just above today's level from accumulated volume at $212.60, $213.34 and $213.45.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, General Dynamics Corporation finds support just below today's level at $198.73. If this is broken, then the next support from accumulated volume will be at $194.66 and $193.84. The stock is about to test the resistance from accumulated volume at $212.60 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 $2.24 (1.07%) between high and low. For the last week, the stock has had a daily average volatility of 0.97%.
Our recommended stoploss: $200.86 (-5.09%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 1 days ago.)
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Several short-term signals, along with a general good trend, are positive and we 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. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.
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