Philip Morris Is Close to Resistance
Published on Monday, 07 May 2012 05:52 Written by TradersHuddle Wire
New York, May 7th (TradersHuddle.com) - Shares of Philip Morris International Inc. (NYSE:PM) are trading very close to calculated resistance at $91.05. The stock ended the trading session at just $89.13, which is near levels that make it difficult to buy or start a position.
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' stock range is defined by its calculated support defined at $72.85 and by the resistance level at $91.05; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Philip Morris. 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 breaks above its resistance level at $91.05 then traders will get an opportunity to enter the stock as it moves to a higher range.