MO breaks below Monday's low
Altria Group Inc. (MO) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
MO ended Tuesday at 56.39 losing $0.55 (-0.97%), strongly underperforming the S&P 500 (0.05%). Closing below Monday's low at 56.51, the stock confirmed its breakout through the prior session low after trading up to $0.50 below it intraday.
Daily Candlestick Chart (MO as at Apr 16, 2019):
Tuesday's trading range has been $0.79 (1.39%), that's slightly below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MO.
After trading as low as 56.01 during the day, Altria Group found support at the 200-day moving average at 56.17. The last time this happened on March 27th, MO gained 0.71% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 57.11 where further buy stops could get triggered. With prices trading close to this year's high at 57.88, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Altria Group. Out of 53 times, MO closed higher 52.83% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 69.81% with an average market move of 0.86%.