Smoking is Bad but these charts look good. $MO $PM (January 28, 2021)
MO PM
This is Scott with your Chart of the Day. I want to take a look at two tobacco charts actually; and I will be honest with you I am not excited about it. I am not really excited about much in the market these days. But I am specifically not too excited about a tobacco chart. Smoking is bad, let’s just get that out. But these are some good-looking charts, so maybe we can make money off of them and then donate that money to charity or something.
Here are the setups that I am looking at: I want to take a look at Altria Group ( NYSE: MO ). Altria Group ( NYSE: MO ) had earnings and it looks like the market liked the earnings because it was up today on a pretty choppy day in the market and up on a decent pickup in volume. You can see it stopped right at a recent level of resistance; this level was resistance back here as well in December.
What I like is the fact that we have these Bollinger Bands kind of pinching together. We have price really close to some major moving averages, and we have some clearly defined levels of resistance. I want to see a move above $43.00 here on MO ( NYSE: MO ), coming on higher than average volume. I am going to set an alert right around $43.00 and watch for that.
Now, another tobacco chart that caught my eye today was Philip Morris ( NYSE: PM ). I will tell you Philip Morris ( NYSE: PM ) has earnings coming up on February 4th, so you don’t want to hold the stock going into earnings unless you have a good cushion. But again, I see some clearly defined levels of resistance on this chart right around that $82.00 level. And again, we have the Bollinger Bands nice and close together and price really close to some major moving averages.
So on Philip Morris ( NYSE: PM ) I want to see a move above 82.30 coming on higher than average volume. And again, unless the stock really kind of moves a good 10 or 20 percent in our favor, in the next couple of days or so, I wouldn’t recommend holding this stock going into earnings, again, unless you have a nice big cushion.
Those are two charts that caught my eye today. I am going to set my alerts, maybe you should too.
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