Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Darius Anucauskas

Could The Philip Morris Stock Push A Bit Further North?

Since the sharp sell-off in the beginning of March, the Philip Morris International Inc. stock (NYSE: PM) managed to recover some of its losses. Looking at the technical picture on our 4-hour chart, we can see that from the end of May, the share price is trying to overcome the 200 EMA and the 74.60 barrier, marked near the highs of May 28th and June 3rd. Additionally, the stock is still balancing above a short-term tentative upside support line taken from the low of March 23rd, which adds a bit more positivity into the near-term outlook. That said, in order to aim for slightly higher areas in the near term, a break of the 74.60 barrier would be needed, hence why we will take a cautiously bullish approach.

A strong move above the 74.60 zone, would also place the share price above the 200 EMA and confirm a forthcoming higher high. More buyers could join in and help lift PM a bit higher. The next obstacle on the way up could be at 76.14, a break of which may clear the path to the 78.43 level. That level marks the highest point of April, which might stall the acceleration for a bit.

The RSI and the MACD on our 4-hour chart are currently somewhat in support of our cautiously-bullish approach. The RSI is slightly on the flat side, however remains above 50. The MACD, although it is currently flat and fractionally below its trigger line, the indicator remains comfortably above zero.

Alternatively, if the stock suddenly falls sharply below the aforementioned upside line and also drops below the 69.50 hurdle, marked by the low of May 22nd, this could clear the way to some lower areas. Such a move might spook new investors from entering anytime soon, which may cause PM to drift further south. The share price could then move to the 68.04 obstacle, a break of which could set the stage for a slide to the 66.80 level, marked by the lowest point of May.

PhilipMorris-240

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS