General Dynamics Corp (Stock Symbol: GD) is Pushing Past its 2008 Trading Levels

Our last trading opportunity was CRM, which announced horrible profits, but still managed to hang on to the low 60s. Some of you may have noticed that once again, General Dynamics Corp (Symbol: GD) is now pushing through its all time high in 2008.  Does this mean its time to buy?  Maybe.  Lets take a look.

General Dynamics Stock Chart March 2014

 

The all time chart shows that this stock is familiar with splits, something most companies do only when they feel the stock will continue higher. This is a good sign.

We also see a compression pattern at $65 that may indicate the catalyst responsible for the current up swing.  We feel the break through the $100 level could warrant another stock split if the stock can maintain strength around the $125 range.

2 Year Chart for General Dynamics Stock (SYM: GD)

2 Year Stock Trading Chart for GD

 

Here we see a compression pattern at the $85-$90 range followed by a steep breakout.  It looks like there was strong support in the low 60s and $65 level, as well as some tough resitance below $75.   However, the stock has shown legs enough to warrant profit targets to match stop losses at $95, $85, $75, and even $65 (although, we would only use this with shares grouped into time frames.  For example, 300 shares on the daily chart, 200 shares on the weekly, and 100 on the monthly could work).

We of course expect that there will be some very close term shorting, but we do not feel there is a real swing trade on the short side here that makes any sense.

A stop loss at $93 something gives us 20% wiggle room on a stock that has shown the momentum potential to double itself in a 12 month period.

 

We like the long here, but remember, at HFT trading profit we do not give advice, we merely point out trading opportunities.

 

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