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General Dynamics (GD) in Bearish Breakout, 196 is Also Critical

General Dynamics $GD has broken a rising trendline and fallen below the 100-day simple moving average (SMA). Last week, we noted that GD could remain bullish if the market bought GD around these support factors

GD Daily Chart

(click to enlarge)

Last Line of Defense:
- Price has broken the 100-day SMA and a rising trendline. Meanwhile, the RSI has fallen below 40.
- These are signs that the market is no longer bullish (but these are not signs that the market is bearish). 
- Now, price is hovering above the 200-day SMA and the 200 psychological level.
- A close below 200 at the end of the week could represent bears in control.
- We might be seeing GD enter a period of consolidation/bearish correction. 
- That means, I would limit bullish expectations to the 205-206 area and anticipate downside risk towards 180. with the most aggressive bearish outlook being 170, which would reverse all the 2017 gains.
- I think the market will buy before GD falls to 170.