Key Level for Altria

Published on Thursday, 09 February 2012 09:04 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Altria Group, Inc. (NYSE:MO) closed the trading session at $28.84 near its 50 day moving average currently set at $28.85. Altria's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $28.25 and calculated resistance at $30.40. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Altria shares.

Traders should evaluate their trade if they want to establish a position on Altria given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.