by Sam Collins | August 9, 2012 1:27 am
General Dynamics Corp. (NYSE:GD) — This is the world’s fifth largest military contractor and one of the key makers of small jets. Because of its dependence on government orders, GD has had its earnings and price objective regularly cut by analysts.
Technically the stock is attempting to consolidate at $62 after falling from a high of over $74 earlier this year. But a death cross in June and high-volume selling, which tests the support at $62, will likely give way to lower prices.
The stochastic issued a short-term buy signal, which could pop GD to $64 where traders may try to execute a short sale with a target of $58. Investors should consider selling this stock and switching to better long-term prospects.
Short-sellers should check with their broker for special requirements and place a stop-loss order at 5% above their short-sale price in order to protect against unlimited losses.
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