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For today's chart we've chosen to take a look at General Mills Inc (NYSE:GIS) because it is nearing an influential level of resistance. As you can see from the chart below, the $61.50 level has prevented the bulls from sending the price higher in the past and it will be interesting to see if this story will continue. We've overlaid the Fibonacci retracement levels onto the chart because this tool is commonly used by traders to find levels of support/resistance. Notice how the price recently bounced off the 23.6% retracement level. This is technically significant because the Fibonacci level will likely act as a short-term level of support when bears respond to the recent rally.

We expect that breakout traders will be watching for the price to close above $61.50 to trigger a move higher. We'll wait a few more days to see whether traders will be able to push the price above the nearby resistance or if the stock is destined to retrace toward the major Fibonacci levels.


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