Altria Group, the parent company of Philip Morris USA, was all over the news today after the Supreme Court ruled in the cigarette-maker's favor, reversing a $10-billion verdict. The much-anticipated news sent the price of the stock to an all-time high on extremely heavy volume. As you can see from the chart below, this move may prove influential over the short-term direction because it is now above a key area of resistance. The $75.50 level has proved to be a strong barrier over the past two months, but now that the price is above it, we'd expect it to be an area of support in the event of a pullback.

We've added the MACD indicator, which has crossed over its signal line. The cross that we've seen today is due to the large spike in price, which does not make this the best signal but it can be used to predict further upward momentum.



MO_121505.jpg




You May Also Like

Related Analysis
  1. Chart Advisor

    Healthcare Stocks Continue to Be a Good Bet

  2. Stock Analysis

    Media & Retail Highlight Earnings This Week

  3. Forex Strategies

    Can Forex Trading Make You Rich?

  4. Stock Analysis

    Thursday Defense Contracts Top $980 Million

  5. Investing Basics

    Will Jack Dorsey Save Twitter?

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!