General Mills all time High

Published on Tuesday, 19 January 2010 14:32 Written by Christopher Lynn

New York, Jan 19^th (TradersHuddle.com) – Shares of General Mills Inc (NYSE:GIS) booked another 52 week high by reaching an intraday high of $72.25 to then rollover in the second half of the trading session.

Shares of General Mills have been soaring for the past 4 months, on a very tight channel and a very steep uptrend. Technically the stock has been holding its uptrend defined by its 20 day moving average, which has not been broken since late October.

Traders are now looking at General Mills price action for clues to determine if its uptrend will continue or if it will enter a sideways consolidation period, so far the Bollinger Bands are starting to contract and seem to be capping any upside towards the $72.50, which will need to be broken for the stock to continue higher.

Also to consider is the fact that $72.50, is not only a 52-week high, but an all time high in General Mills stock, which late in 2007 saw its stock peak at around $72 before falling to its March of 2009 bottom at $46.37.

If General Mills fails to break the $72.50 the stock might start facing the fact that traders will be looking at a double top formation that would give entry to the bears to take control of the stock.