Technical breakout investing focuses on identifying stocks with strong momentum and consolidation patterns, signaling potential upward moves. ALTRIA GROUP INC (NYSE:MO) currently fits this strategy, displaying both high technical strength and a solid setup for a breakout.
Strong Technical Rating
The ChartMill Technical report assigns ALTRIA GROUP INC (NYSE:MO) a perfect Technical Rating of 10, indicating robust health in both short and long-term trends. Key factors contributing to this score include:
- Positive trends: Both short and long-term trends are upward, reinforcing bullish momentum.
- Relative strength: The stock outperforms 92% of all stocks over the past year, showing consistent price appreciation.
- 52-week high proximity: Trading near its 52-week high of $60.18, a positive signal given the broader S&P 500's mixed performance.
- Moving averages: The stock is above all key moving averages (20, 50, 100, and 200-day SMAs), confirming sustained upward pressure.
High-Quality Setup
With a Setup Rating of 8, ALTRIA GROUP INC (NYSE:MO) presents a compelling consolidation pattern:
- Tight trading range: Prices have consolidated between $52.82 and $59.66 over the past month, reducing volatility.
- Support and resistance: A clear support zone exists at $58.99, while resistance sits at $59.32. A breakout above resistance could signal further upside.
- Pocket pivot: A recent pocket pivot—a bullish volume-driven signal—adds confidence to the setup.
Potential Trade Setup
The report suggests:
- Entry: $60.04 (above resistance)
- Stop-loss: $58.55 (below support)
- Risk: 2.48% per trade
For investors seeking similar opportunities, explore more Technical Breakout Setups.
Disclaimer: This analysis is not investment advice. Always conduct your own research and consider risk management strategies before trading.
