Is Altria Setting for a Break Out?
Published on Friday, 05 July 2013 07:00 Written by TradersHuddle Wire
New York, July 5th (TradersHuddle.com) - Altria Group, Inc. (NYSE:MO) closed the trading day at $35.49, near its 50 day and 200 day moving averages set at $36.14 and $34.12 respectively. Altria's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.
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.
Altria seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.
A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Altria and wait for the stock to break out above its 50 day moving average at $36.14. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $34.12 breaks, it could signal further downside pressure for Altria.