General Mills Plunges 5.11% to $50.68 Amid Bearish Technical Breakdown

General Mills (GIS) experienced a significant 5.11% decline in the latest session, closing at $50.68 amid above-average volume of 13.26 million shares. This marked the second consecutive down day, totaling a 5.22% loss over 48 hours, with price action breaching key psychological support at $53.00.
Candlestick Theory
Recent sessions reveal a bearish confirmation pattern: Friday’s 5.11% plunge formed a long-bodied red candle after Thursday’s small bearish candle and Wednesday’s indecisive doji. This breakdown through the $53.00 support level (tested multiple times in June) establishes new resistance near $52.80–$53.20. The absence of reversal signals like hammers or bullish engulfing suggests continued downside vulnerability, with $50.00 emerging as psychological support.
Moving Average Theory
GIS trades well below all key moving averages, signaling entrenched bearish momentum. The 50-day MA (approximately $56.50) crossed bearishly under the 100-day MA (~$59.00) in late April, while the 200-day MA (~$62.80) maintains a steep downward slope. This alignment reflects a "death cross" configuration, with the price $12+ (20%) below the 200-day MA—a characteristic of a strong downtrend requiring substantial momentum shift to reverse.
MACD & KDJ Indicators
MACD exhibits bearish acceleration, with the histogram expanding negatively below both signal line and zero since early June. KDJ corroborates oversold conditions (K=18, D=22), yet sustained readings below 20 since mid-June demonstrate the indicator’s tendency to remain oversold during powerful downtrends. While oversold, neither oscillator shows bullish divergence, suggesting momentum remains to the downside.
Bollinger Bands
Thursday’s volatility contraction (bands narrowing to a 2.5% daily range) preceded Friday’s explosive 5.11% breakdown, triggering a band expansion. Price now trades near the lower Bollinger Band (~$50.30), which typically acts as minor support in downtrends. However, consecutive closes below the lower band may signal an oversold bounce is becoming increasingly probable, though not yet indicated by other indicators.
Volume-Price Relationship
Friday’s selloff occurred on 13.26M shares—nearly double the 10-day average volume—validating bearish conviction. This follows a concerning pattern: all five >5% down days in the past year saw above-average volume, while rallies were generally weaker (e.g., the 2.40% gain on April 9 occurred on just 7.45M shares vs. 10.1M shares during the preceding 3.29% drop). Distribution is evident near $55-$60 resistance, reinforcing supply dominance.
Relative Strength Index (RSI)
The 14-day RSI (approximately 28) resides deep in oversold territory (<30). Historically, similar readings (like the 29 RSI during March’s $59.29 low) preceded minor relief rallies. However, RSI alone provides insufficient reversal confirmation, particularly during strong trends. Caution is warranted given the lack of bullish divergence and the indicator’s repeated failure to sustain moves above 50 during 2025.
Fibonacci Retracement
Drawing from the September 2024 high of $75.01 to the current $50.66 low, key Fibonacci levels offer resistance targets for potential recoveries: 23.6% ($56.40), 38.2% ($59.96), and 50% ($62.84). The $56.40 level aligns with June’s failed stabilization attempts, creating a confluence resistance zone with the 50-day MA. Notably, the swift breakdown through the 100% extension level ($50.66) leaves no meaningful historical supports until psychological $50.00.
Confluence and Divergence Observations
Confluence of bearish signals dominates: breakdown below $53 support, volume-confirmed selling, alignment below all key MAs, and absence of bullish divergences in RSI/MACD underscore persistent downward pressure. A critical divergence exists in KDJ’s prolonged oversold reading against persistent new lows—a potential early (but unconfirmed) exhaustion signal. Any reversal attempt requires reconquering $52.80 resistance with strong volume, though technical structure currently favors downside continuation toward $49.00–$50.00.