4 Trade Ideas for General Mills: Bonus Idea

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

General Mills, $GIS, ended Friday pushing over trend resistance that goes back to July 2016. It also moved up over short term resistance and to the May highs. This could trigger a kind of Cup and Handle over 64.50 with a target to 75. The RSI is rising in the bullish zone with the MACD about to cross up after a pullback.

There is resistance at 64.25 and 65.75 then 67 and 67.75 before 69.75 and 71.50 then 72.75. Support lower comes at 63 and 62 then 61.40. Short interest is low at 2.5%. The stock pays a dividend with an annual yield of 3.18% and will start to trade ex-dividend on January 7th. The company is expected to report earnings next on December 21st.

The December options chain shows biggest open interest at the 60 and 62.50 put strikes and at the 65 call. In January, open interest is spread from 42.50 to 62.50 on the put side and builds from 57.50 to a peak at 67.50 on the call side.April options are starting to build open interest on the put side and have some size at the 65 call strike.

General Mills, Ticker: $GIS

Trade Idea 1: Buy the stock on a move over 64.50 with a stop at 62.

Trade Idea 2: Buy the stock on a move over 64.50 and add a January 62.50/57.50 Put Spread ($1.25) while selling the April 70 Call ($1.00).

Trade Idea 3: Buy the December/January 67.50 Call Calendar (85 cents) and sell the January 60 Puts (85 cents).

Trade Idea 4: Buy April 57.50/65/70 Call Spread Risk Reversal ($60 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 4 weeks of trading left in 2021, saw equity markets showing more weakness.

Elsewhere look for Gold to consolidate while Crude Oil pulls back. The US Dollar Index continues to trend to the upside while US Treasuries renew their uptrend. The Shanghai Composite looks to consolidate in a broad range while Emerging Markets continue to move lower. The Volatility Index looks to remain elevated making building strong headwinds for equity markets.

Their charts remain mixed with the SPY and QQQ strong on the longer timeframe but with building weakness in pullbacks on the shorter one. The IWM is weak on both timeframes and testing support after a failed break and reversal. It brings to mind the trader adage of “from failed moves come fast moves”. 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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