Trading Idea - Is Altria close to Resistance?

Published on Friday, 23 December 2011 08:48 Written by Danny Miller

New York, December 23rd (TradersHuddle.com) - Shares of Altria Group, Inc. (NYSE:MO) are trading very close to calculated resistance at $30.40 with the current price action closing at just $29.82 placing the stock near levels that make it difficult to buy.

Altria Group, Inc. (NYSE:MO), its a holding company, parent of Philip Morris USA, John Middleton, and US Smokeless Tobacco Company. Altria, through its subsidiaries, engages in the manufacture and sale of cigarettes, and other tobacco products in the United States and internationally. It primarily offers cigarettes under the Marlboro, Virginia Slims, and Parliament brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands; and machine-made large cigars and pipe tobacco.

Altria's current stock range is defined by current calculated support defined at $25.27 and by the resistance level at $30.40, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Altria, as the stock is well above support, however, as the stock pulls back towards $25.27 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $30.40 then traders will get an opportunity to enter Altria stock by establishing a position as the stock moves to a higher range.