New York, October 29th (TradersHuddle.com) - Shares of Philip Morris International Inc. (NYSE:PM) closed the trading session at $88.28 with its price action in a very tight range, given that calculated support is set at $87.40 and the calculated resistance is set at $92.59.
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 price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.
Traders wanting to establish a position should pay close attention to Philip Morris' price action, as any movement outside its predefined range of $87.40 and $92.59 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.
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