From the end of December 2018 up until March 22nd, the Philip Morris stock (NYSE: PM) had been on a steep uprise. But closer to the last days of March, the share price started losing its grounds and retraced a bit lower. That said, PM found good support near the 82.50 hurdle on April 18th and 25th and rebounded with the buying activity showing signs of picking up again. For now, we remain somewhat positive, but we will wait for a confirmation break above one of our key resistance levels, before examining further upside.
A push above the 87.20 barrier, marked by the highs of April 18th and 30th, could give some hope to investors and open the door to some higher areas. Those areas were last time tested in the end of March. If more buyers join in, this could lift PM to its next possible resistance zone, at 89.55, which is the high of March 26th. If that zone doesn’t stop the further price acceleration, a break of it may lead the stock to the highest points of October and March, at 92.65.
Our oscillators, the RSI and the MACD, seem to be supporting the above-discussed idea. The RSI is above 50 and points to the upside. The MACD, although still below zero, has now shifted above its trigger line and points up as well.
Alternatively, a price-drop below the 82.50 hurdle could make investors worry again about the stock’s upside potential, at least in the short run. This is when the share price could slide towards the psychological 80.00 obstacle that marks the high of February 8th. Even if PM rebounds slightly back up from there, as long as it remains below the 82.50 barrier, the stock may continue trading under negative pressure, which could result in another slide. If so, the slide might force the 80.00 support area to break and clear the path to the 77.15 level, marked by the low of January 31st.
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