General Mills Slumps 3.3% to $49.43 Amid Technical Breakdown

General Mills (GIS) declined 3.29% during the most recent session to close at $49.43, with trading volume of 7.41 million shares. This significant drop occurred within a daily range of $49.10 to $51.32, breaking below the psychological $50 level and forming a bearish continuation pattern after recent volatility. The following technical analysis evaluates key indicators across multiple frameworks to assess potential future price action.
Candlestick Theory
The most recent candle shows a long bearish body closing near its low after a rejection at $51.32, confirming resistance near the $51.00-$51.50 zone. This follows a gravestone doji on 2025-09-24 ($50.51-$51.33), which signaled exhaustion after a three-day recovery attempt. Key support emerges at the $49.10 swing low, with a breach potentially targeting the June 2025 low of $48.42. Resistance clusters between $50.80-$51.30, anchored by August and September highs.
Moving Average Theory
The 50-day moving average ($51.26) crossed below the 100-day MA ($53.01) in early September, confirming a bearish intermediate trend. Current price trades substantially below both averages, with the 50-day acting as dynamic resistance. The 196-day MA (proxy for 200-day; $57.15) maintains a steep downtrend, reinforcing the dominant bearish bias. This alignment suggests continued selling pressure may persist until the price reclaims the 50-day average.
MACD & KDJ Indicators
The MACD (-1.24) remains entrenched below its signal line, with the histogram expanding negatively since late August. This divergence from September's minor price recovery highlights underlying bearish momentum. KDJ metrics (K: 28.1, D: 35.6, J: 13.1) entered oversold territory but show no bullish crossover. While these readings may indicate potential exhaustion near-term, the absence of momentum reversal signals warrants caution before anticipating a sustained rebound.
Bollinger Bands
Price pierced the lower Bollinger Band ($49.90) during the session, closing just above it at $49.43. The bands expanded notably after a prolonged contraction phase in August, reflecting increasing bearish volatility. Given the expansion phase typically persists during directional moves, current bandwidth (2.8%) suggests additional downside room exists. Upper band resistance at $53.40 appears distant.
Volume-Price Relationship
Volume surged 23% above the 20-day average during the sell-off, validating bearish conviction. This distribution pattern contrasts with below-average volume during the preceding two-day rebound, indicating weak accumulation. Notably, all significant downswings since July (June 25: -5.11%, August 26: -3.40%) occurred on heavy volume, confirming sell-off sustainability. Support near $49 needs equivalent accumulation volume to validate any reversal attempt.
Relative Strength Index (RSI)
The 14-day RSI (31.5) approaches oversold territory but shows no positive divergence relative to price. This marks the third oversold test since June, potentially eroding its reliability as a reversal indicator. While a technical bounce could emerge near 30, the indicator's repeated failure to exceed 60 during bear market rallies since April underscores entrenched weakness. RSI would need sustained readings above 45 to suggest momentum stabilization.
Fibonacci Retracement
Applying Fibonacci to the June swing high ($53.47) and August low ($48.42) shows current price testing the 127.2% extension level ($49.18). A breach targets the 161.8% extension near $47.65. Resistance coincides with multiple retracement levels: 61.8% ($51.45), 50% ($50.94) and 38.2% ($50.44). The cluster between $50.44-$51.45 represents a critical resistance zone where price previously failed at the 50% retracement on September 24-25.
Confluence and Divergence
Confluence emerges around $49.00-$49.50, where Bollinger Band support, the August swing low, and Fibonacci extensions align with oversold KDJ/RSI readings. However, bearish divergences prevail: declining moving averages contradict September's minor recovery, while expanding MACD histogram and increasing down-volume validate bearish momentum. The most critical resistance remains $50.80-$51.50, where the 50-day MA, Fibonacci 50% retracement, and recent price highs converge. A sustained break above this zone would be needed to invalidate the current downtrend.