Approaching Resistance - Philip Morris

Published on Wednesday, 25 January 2012 19:36 Written by Christopher Lynn

New York, January 25th (TradersHuddle.com) - Shares of Philip Morris International Inc. (NYSE:PM) are trading very close to calculated resistance at $79.42 with the current price action closing at just $76.81 placing the stock near levels that make it difficult to buy.

Philip Morris International Inc. (NYSE:PM) licensees, produces, and markets a wide range of branded cigarettes and tobacco products in markets outside of the United States of America. The portfolio include Marlboro, Merit, Parliament, and Virginia Slims.

Philip Morris' current stock range is defined by current calculated support defined at $72.85 and by the resistance level at $79.42, 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 Philip Morris, as the stock is well above support, however, as the stock pulls back towards $72.85 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 $79.42 then traders will get an opportunity to enter Philip Morris stock by establishing a position as the stock moves to a higher range.