Trading Idea - Is Altria close to Support?

Published on Friday, 13 January 2012 07:40 Written by Christopher Lynn

New York, January 13th (TradersHuddle.com) - Shares of Altria Group, Inc. (NYSE:MO) ended close to calculated support at $28.25 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

Altria's current stock range is defined by current calculated support defined at $28.25 and by the resistance level at $30.40, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of Altria Group, Inc.. However, this area if breached will signal participants that the stock failed to entice buyers to step in and support the stock.

Traders wanting to establish a position should pay close attention to Altria's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $30.40 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of Altria Group, Inc. closed at $28.84 in the previous trading session.

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.