Reference Points for Altria

Published on Friday, 18 May 2012 06:32 Written by TradersHuddle Wire

New York, May 18th (TradersHuddle.com) - Altria Group, Inc. (NYSE:MO) closed the trading day at $31.86, near its 50 day moving average that is set at $31.22. Altria's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $28.25 and calculated resistance at $30.36. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Altria should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.