Stock of the day: Philip Morris

By Tomasz Wisniewski|

Published: September 21 2022, 11:59 GMT+0

Stock of the day: Philip Morris

In today’s analysis, we’re taking a look at Philip Morris, which we had previously analysed at the end of August. Back then, the price was breaking the neckline of the Head and Shoulders pattern, which gave us a mid-term sell signal.

In general, the price did continue the downtrend, making lower lows and highs. However, honestly speaking, I was expecting something more spectacular. The price eventually reached the local bottom on September 14th and since then, we’ve had a small bullish correction. The price is currently forming a wedge pattern (red lines). As long as we are inside the wedge, the sentiment is negative, but this formation promotes a breakout to the upside.

So how do you trade the current situation? The price breaking the upper line of the wedge will bring us a buy signal. A bounce from this resistance will keep the bearish sentiment on. With the recent price swings, I think that the breakout scenario could happen really soon.