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 approaching resistance. Should it continue through it would qualify as a reversal confirmation. It has already triggered a bullish Shark harmonic pattern with a first target to 69.74 and second target to 77.82. It has a RSI at the edge of a move into the bullish zone with the MACD about to turn positive.

The Bollinger Bands® are open to the upside as well. There is resistance at 66.50 and 68 then 69 and 70 before 71.25 and 73 then 74.50. Support lower comes at 65 and 63.50. Short interest is low at 2%. The stock pays a dividend with an annual yield of 3.61% and has traded ex-dividend since October 6th.

The company is expected to report earnings next on December 18th. The November options chain shows biggest open interest at the 65 put strike and then lower at 63 and 62.50. On the call side it is biggest at 65 and 67.50. In the December chain there is little put open interest but bigger amounts on the call side from 65 to 70. Finally, the January 2024 chain has biggest open interest at the 72.50 then 75 put strikes, and from 72.50 to 90 on the call side.

General Mills, Ticker: $GIS

Trade Idea 1: Buy the stock on a move over 66.50 with a stop at 63.50.

Trade Idea 2: Buy the stock on a move over 66.50 and add a November 65/61 Put Spread ($1.00) while selling the December 70 Call (50 cents).

Trade Idea 3: Buy the December/January 70 Call Calendar (80 cents) and sell the December 60 Put (45 cents).

Trade Idea 4: Buy the January 60/67.50/72.50 Call Spread Risk Reversal (50 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 just 2 trading days left in October and an FOMC meeting next week, saw equity markets pressing to move past a correction to something bigger.

Elsewhere look for Gold to continue its assault on $2000 while Crude Oil consolidates. The US Dollar Index continues to consolidate the move to the upside while US Treasuries continue in their downtrend. The Shanghai Composite looks better lower while Emerging Markets also remain in a downtrend.

The Volatility Index looks to remain at moderate levels but rising making the path easier for equity markets to the downside. Their charts look weak, especially the IWM and the SPY. The QQQ has also changed to looking better lower as the big news of the week. Use this information as you prepare for the coming week and trad’em well.

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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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