GD - General Dynamics Corp. $74.75 +1.75 (+1.63)

General Dynamics (GD) is the largest U.S. maker of naval vessels and tanks. The company generates 60% of its sales from government contracts. Currently, GD is trading just below its most recent split-level of $88.44, which we feel might be overtaken with a strong upward momentum on good volume. Presently, shares have just broken above a five-day trading range at $73 and good volume (1.50 million shares traded) now suggests that it could be on its way to the all time high of $75.44. However, our initial entry point will be signaled when the stock can advance sharply through today's intra-day high of $75.19. Further up, a tougher challenge at the $80 and $85 levels are bound to arise. Each of these levels could present a good opportunity to lock in gains should the stock run higher on decreasing volume. For support, we'll look for recent consolidation at the $73 level to be followed by a stronger base just lower at the intermediate high of $71.69. Sharp reversals from either of these levels, when accompanied on good volume, will present our entry points. We'll set a firm stop below these levels at $70.50, to protect us against a reversal in trend.

Picked on November 21st @ $74.75 Change since picked 0.00