Conclusion, Investment Implications, Strategy
An emerging bullish breakout from months of sideways investor indecision in Philip Morris International Inc. (PM) targets an additional 13% rise to $88.00 per share.
Analysis and Rationale
Philip Morris International Inc. (PM), through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories. The company offers IQOS smoke-free products, including heated tobacco and nicotine-containing vapor products under the HEETS, HEETS Marlboro, and HEETS FROM MARLBORO brands, as well as the Marlboro HeatSticks and Parliament HeatSticks brands. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands. It markets and sells its products in the European Union, Eastern Europe, the Middle East, Africa, South and Southeast Asia, East Asia, Australia, Latin America, and Canada. Philip Morris International Inc. was incorporated in 1987 and is headquartered in New York, New York.
Chart 1 below plots PM daily since January. The green highlights point out an emerging bullish breakout from four months of sideways indecision from the March 23rd low. A sustained rise above the upper boundary of the indecision area at $76.17 would target an additional 13% rise to $88.00 per share and would be further confirmed by a rise above the 200-day moving average, a widely-watched major trend proxy currently situated at $78.73.
Chart 1
Table 1 below shows, considering the aforementioned upside target and a protective stop placed below the $75.23 area, a long entry price of $77.67 would provide a 1:4.2 risk/reward ratio (risking $1.00 to make $4.20) with an initial risk of 3.1%.
Table 1
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