Technical Earnings Preview: Philip Morris near middle of recent range (TheFlyOnTheWall)
FLY ON THE WALL 1:34 PM ET 7/19/2017
The shares have been trading for more than a month in a range largely bound by $116.50 at the low and $123.50 at the high. Price is near the middle of that range ahead of earnings. In the last few weeks a bullish rounding pattern has become evident. This pattern would have upside potential to the $123.50 area. On strongly positive news, the top of the range could be exceeded. Using the range height as a measure, upside potential would be to the $130 area. If the news is a negative surprise, a drop in price below $118 would void the rounding pattern. Next support would be at the range low at $116.50. Below that area, next support levels to watch as potential downside objectives would be at the $115 area, $112.47, and the $110 area. The $110 area was a strong zone of support from March to May.
