This quality cereal maker shows signs of reversing a long downtrend and may be poised to turn around
Several signals suggest that momentum is changing to the upside for General Mills.
TL;DR
- General Mills shares rose 3.4% after beating earnings expectations and issuing guidance in line with forecasts.
- The stock has been in a year-to-date downtrend but showed signs of a technical reversal on Wednesday.
- Momentum indicators, including RSI and PPO, exhibit bullish divergence and positive short-term trends.
- Long-term charts reveal a strong support area around $45 and oversold conditions in the Stochastic oscillator, suggesting building demand.
- A rally back to the 200-week moving average could yield over a 30% return, though patience is required.
- The company offers a 5.2% dividend.