4 Trade Ideas for General Mills: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

General Mills, $GIS, comes into the week in consolidation below the 50 day SMA in a small triangle. This came after a gap up and gives a target to 86.40 on a break higher. The price is now back inside the Bollinger Bands® which are open to the upside. The RSI is rising and into the bullish zone with the MACD about to turn positive.

There is resistance at 81.15 and 82.50 then 85.25 and 86.25 before 87.50. Support lower sits at 80 and 78.50 then 77. Short interest is low at 2.4%. The stock pays a dividend with an annual yield of 2.68% and will be trading ex-dividend on April 6th. The company is expected to report earnings next on March 21st.

The March options chain shows biggest open interest at the 75 and 72.50 strikes on the put side, and at the 80 then 75 strikes on the call side. In the April chain the 65 put is biggest open interest while it is spread from 77.50 to 87.50, biggest at 82.50 on the call side. The June chain is biggest at 72.50 then 75 on the put side and at 80 then 72.50 on the call side.

General Mills, Ticker: $GIS

Trade Idea 1: Buy the stock on a move over 81.25 with a stop at 79.50.

Trade Idea 2: Buy the stock on a move over 81.25 and add an April 80/75 Put Spread ($1.60) while also selling the June 87.50 Call ($1.15).

Trade Idea 3: Buy the March/April 82.50 Call Calendar ($1.20) while selling the April 75 Put (85 cents).

Trade Idea 4: Buy the June 75/82.50/87.50 Call Spread Risk Reversal (45 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with only 2 trading days left in February, saw equity markets showed some weakness as they reacted to a less sanguine Fed in their discussion of disinflation.

Elsewhere look for Gold to continue its short term pullback while Crude Oil consolidates in a tight range. The US Dollar Index continues to move to the upside while US Treasuries pullback in consolidation. The Shanghai Composite looks to continue to consolidate under resistance while Emerging Markets continue the move lower.

The Volatility Index looks to remain in the normal range and stable making the path easier for equity markets to the upside. Their charts are showing weakness on both timeframes but remain well above the prior lows, not threatening the nascent uptrends at this point. The SPY and QQ also remain above the falling trendline that acted as resistance through 2022. The IWM trend looks the strongest at this juncture. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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