MO dominated by bulls lifting the market higher throughout the day
Altria Group Inc. (MO) Technical Analysis Report for Sep 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MO finished Tuesday at 44.24 gaining $0.20 (0.45%), slightly outperforming the S&P 500 (0.03%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MO as at Sep 10, 2019):
Tuesday's trading range has been $0.77 (1.77%), that's slightly below the last trading month's daily average range of $1.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MO. Prices continued to consolidate within a tight trading range between 43.41 and 44.60 where it has been caught now for the whole last trading week.
In spite of a weak opening Altria Group managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on August 13th, MO actually lost -1.95% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 44.60 (R1). The stock found buyers again today around 43.47 for the third trading day in a row after having found demand at 43.62 in the prior session and at 43.66 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 44.60 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 43.07 where further sell stops could get triggered. With prices trading close to this year's low at 42.40, downside momentum might speed up should the share break out to new lows for the year.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Altria Group. Out of 330 times, MO closed higher 55.45% 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 63.64% with an average market move of 0.50%.