General Mills

General Mills ( GIS) is another food company that has massive retail exposure -- $10.25 billion annually to be precise. And right now, this stock is approaching a significant breakout level.

$40 has acted as a price barrier to General Mills for the last several months, pushing shares lower on its most recent test of that price level in early October. In the real world, resistance levels like that $40 price in GIS occur when there's a glut of supply of shares sitting above a set price. As buyers bid shares up to $40, their bids get completely absorbed by that excess of supply, and the stock reverses lower from that liquidation of increasingly eager sellers.

>>5 Stocks Setting Up to Break Out

But supply and demand are dynamic -- they change -- and a breakout above $40 tells us that buyers have overcome selling pressure at that price level, opening up room for shares to run higher. Clearly, then, we want to be buyers of GIS after shares have surmounted $40.

General Mills, one of the top-yielding food and beverage stocks, is one of the top holdings of Mairs & Power.

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