close icon

General Mills Stock Staging an Elliott Wave Recovery

If you think the last three months have been bad for stock market investors, think about how General Mills stock investors must be feeling. GIS has been steadily declining since mid-2016. Two and a half years ago, the share price climbed to an all-time high of $72.95. Last week it fell to $36.42, so it is fair to say that General Mills’ market value has been cut in half in less that three years.

Almost everyone was bullish on General Mills stock in July 2016. The stock fell instead. Almost everyone is bearish on GIS now, so can it actually go up this time? Let’s ask the Elliott Wave Principle.
Elliott Wave analysis predicts a recovery for General Mills stock
The daily chart above reveals the structure of the whole selloff from $72.95. The stock’s decline appears to have taken the shape of a textbook five-wave impulse, labeled 1-2-3-4-5. According to the Elliott Wave theory, impulses point in the direction of the larger trend. Unfortunately for General Mills investors, this means more weakness can be expected.

The good news is that one of Ralph N. Elliott’s other findings states that every impulse is followed by a correction in the opposite direction before the larger trend resumes. In other words, a bullish reversal should soon follow. We can expect a three-wave recovery in wave B to lift the share price to roughly $50, before the bear market continues.

The MACD indicator provides another reason for short-term optimism. As visible, there is a bullish divergence between waves 3 and 5 of A, highlighting that the bears are about to go in hibernation. This is probably not the best time to bet against General Mills stock. If the above-shown count is correct, the stage is set for a ~30% rally.

Did you like this analysis? Our Elliott Wave Video Course can teach you how to uncover the patterns yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Can Facebook ‘s Privacy Concerns Fulfill this Setup?

Facebook ‘s privacy policies are under the microscope once again. Personal e-mails uncovered during an FTC investigation reveal Mark Zuckerberg knew of the company’s problematic privacy practices. Facebook stock still hasn’t been able to fully recover from the crash in the second half of 2018, which dragged the price from $218.62 down to $123.02. How…

Read More »

JPMorgan: Risk is High After 10 Years of Bull Market

Between March 2000 and March 2009, JPMorgan Chase & Co. investors saw their holdings’ value decline by almost 78% as the stock fell from over $67 to less than $15 a share. The next ten years, on the other hand, have been a wonder to behold. JPM stock rose like a phoenix from its ashes,…

Read More »

SERV Stock Sets the Stage for a 40% Tumble

ServiceMaster Global Holdings, founded in 1929, is a cleaning and pest control company headquartered in Memphis, Tennessee. The company went public in 2014 and has delivered very generous returns for its shareholders since. SERV stock took off from $11.54 in August 2014 and climbed to as high as $56.50 earlier this month. A 390% total…

Read More »

IAC Stock ‘s Future May Not Resemble its Past

InterActiveCorp. or IAC for short, is a $19 billion media and internet services company. It is the controlling shareholder of Match Group, which in turn operates Tinder – the online dating app. IAC stock was beaten down heavily during the Financial Crisis. In March 2009, IAC stock fell to $13.23 a share, down 92.3% from…

Read More »

Humana Stock Bulls Haven’t Lost the Battle Yet

Humana (NYSE:HUM) climbed to an all-time high of $356 in early November 2018, following a rally from as low as $18.57 in March 2009. In less than ten years, the company rewarded the patience of its investors with a total return of over 1820%, not counting dividends. Unfortunately, the last six months were nothing like…

Read More »

T Rowe Price Vulnerable After Fibonacci Encounter

Founded in 1937 and based in Baltimore, Maryland, T Rowe Price is one of the largest asset management companies in the world. At the end of Q1 2019 its assets under management stood at $1.11T. That is T for trillion. Besides, T Rowe Price is also a public company which is why it is of…

Read More »

Momo Inc. – The Tinder of China Looks Promising

Based in Beijing, China, Momo Inc. operates a mobile-based social and entertainment platform. The company was founded in 2011 and became public in late-2014. The Tinder of China, as Momo is often referred to, first turned a profit in 2015 and has been enjoying strong earnings and revenue growth in the last three years. Momo…

Read More »

More analyses