Cigarettes are Lighting Up
- Posted by Greg Harmon
- on February 12th, 2013
It has been a while since the cigarette stocks have looked good but they are back on the scene and puffing higher. With earnings out of the way after Lorillard, $LO, reports Wednesday morning, it is time to give them a look again.
Lorillard, $LO, is smiling at you, making a rounded bottom into its earnings report and up against downtrending resistance. The long shadowed candle Tuesday moved exactly in line with Reynolds American, $RAI, who reported their earnings Tuesday morning. The Relative Strength Index (RSI) has been trending higher into the report and it also has support from a Moving Average Convergence Divergence indicator (MACD) that is positive. Use a move over 40.50 to get long with the next resistance higher at 42.83 before the gap to 44.
Reynolds American, $RAI
Speaking of Reynolds American, $RAI, their stock touched both ends of support and resistance after reporting. The shadow also held at the bottom of the broad bull flag consolidation at 43.50. A move over 44.50 carries a Measured Move higher to 46.50.
Altria Group, $MO
The chart for Altria Group, $MO, is the clearest in illustrating both the Harmonic patterns involved in all of these stocks and the potential for upside price movement. it is now long in to the final leg of a Deep Crab that has a target of 36.80 to 38.36 before its potential reversal.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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