Pretty MOmen
This morning I received an
e-mail from someone wondering whether there were
any technical clues that might suggest weakness or a possible correction
off the year-long rise in Phillip Morrris
(
MO |
Quote |
Chart |
News |
PowerRating).
If you look at a daily chart, you’ll see MO doing nothing…but
going
higher.
When faced with a momentum-driven surge like this, the worst thing
you can do is the proverbial “stepping in front of the moving freight
train.” But you want to get a handle on the possibilities that lie ahead.
One way to do this is to look at the long-term context. When I stepped back to
the monthly time fame, this is what emerged.
Really–I wouldn’t try to play detective and draw any
conclusions from this. But the current level on MO was very important from
1996 to1998. There is a chance the old two-year resistance may rear its ugly
head again and pressure MO into some kind of pullback.
Until Tuesday,