Defense contractor General Dynamics (GD) has broken out to a new high. We last looked at GD back on June 24 and recommended, "The charts and indicators of GD suggest we should soon see a move to the upside. Traders could go long GD at current levels risking to $180. Our first price target is $213."
With our $213 price target reached, a fresh look at the charts is needed.
In this updated daily bar chart of GD, below, we can see that prices are still strong. Prices tested and rebounded off the rising 200-day moving average line in late November/early December. The On-Balance-Volume (OBV) line has remained firm and is close to making a new high to confirm and support the price advance. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
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In this weekly Japanese candlestick chart of GD, below, we see a bullish picture. Prices are trading above the rising 40-week moving average line with a strong OBV line and a MACD oscillator close to a new buy signal.
In this daily Point and Figure chart of GD, below, we can see an upside price target in the $248 area.
In this weekly Point and Figure chart of GD, below, we have a $250 price target.
Bottom line strategy: Traders who are still long GD - great. New longs could be bought here with a $201 stop. The $248-$250 area is our price objective.
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