Philip Morris International Is Lighting Up the Price Charts
We've got new price targets for the tobacco giant.
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Shares of Philip Morris International PM are emerging from a bottom formation. As a former smoker, I am reluctant to recommend a tobacco company, but my job is to identify investing opportunities for subscribers and I will leave the judgement calls to you.
In this daily bar chart of PM below, I can see a seven-month base pattern with buying interest in the $90 to $88 area. Prices broke out to the upside in late April and now trade above the rising 50-day moving average line and the bullish 200-day moving average line. Trading volume shows us an increasing trend since December. The On-Balance-Volume (OBV) line shows its strength starting in April. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised for a bullish upside crossover.
In this weekly Japanese candlestick chart of PM below, I can see that prices were in a long-term downtrend but that trend was broken in April or May as prices surge higher. PM trades above the rising 40-week moving average line. The weekly OBV line shows me an uneven advance the past twelve months. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of PM below, I can see a bullish setup with a price target in the $120 area.
In this first weekly Point and Figure chart of PM below, I can see a price target in the $120 area.
In this second weekly Point and Figure chart of PM below, I used a five-box reversal filter. Here, the software suggests a price target in the $132 area.
Bottom line strategy: Cough, cough, cough. Now that is out of my system, I can recommend buying PM in the $101 area risking to $97. $122 and then $132 area my price targets.
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