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General Dynamics Corp. - (GD) - March 2, 2022

General Dynamics (GD) spent over three and a half years from mid-2018 to January 2022 stuck in the red unfavored zone of the SIA S&P 100 Index Report. In the last few weeks, GD has rocketed up the rankings on renewed interest in defense contractors, recently returning to the Green Favored Zone for the first time since June of 2018. Yesterday GD finished in 14th place, up 8 spots on the day and up 22 positions in the last month.

General Dynamics (GD) has staged a major breakout this week, breaking through their 2018 peak $225.00 to new all-time highs. This confirms that the uptrend which started just over a year ago remains intact and that a new upleg has started.

Measured moves from recent trading ranges suggest potential resistance tests on trend may appear near the $250.00 round number, then $270.00, and $290.00. Initial support appears near $218, a recent breakout point, and the 50-day moving average near $210.00.

Just over a year ago, General Dynamics (GD) came under renewed accumulation, signaled by a bullish Triple Top breakout and followed by the formation of a bullish high pole and the snapping of a downtrend line. Coming off a minor correction, the shares have regained $200.00, broken through their 2018 peak to trade at new all-time highs and completed a bullish Double Top pattern, all combining to signal the start of a new advance.

Horizontal and vertical counts suggest next potential upside resistance tests on trend may appear near $272.20, $294.65 or $306.55. Initial support appears near $214.65 based on a common 3-box reversal.

With a perfect SMAX score of 10, GD is exhibiting strength across the asset classes.

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