Shares of Philip Morris (PM) - Get Report are trading at new all-time highs today. The stock is up just over 1.4% at mid-session and is beginning to pierce major resistance near the $102.50 area. If PM bulls can continue to drive PM past this key zone, a fresh rally leg could be on the way.

In mid-April, Philip Morris began to show signs of upside exhaustion. Over the previous three months, the stock had surged over 20% from the January lows without a pullback. After stalling just below $102, it was clear that the stock was in need of a healthy consolidation. By the end of April, PM had entered the initial stage of what is now shaping up as a 12-week bullish pennant. An upside resolution to this narrow consolidation, along with a well-below-overbought reading in the moving average convergence/divergence indicator, could lead to a powerful rally.

Once PM is able to put some distance on the $102.50-to-$101.50 area, a very solid support zone will be in place. As this bull phase develops, PM investors should consider the stock a buy near current levels. On the downside, a close back below $100 would indicate that more consolidation is ahead before a new rally leg can begin.

Of note, PM is scheduled to report its second-quarter earnings results on July 19. PM currently yields just over 4%.

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long PM.