Altria's Stock Looks Ready to Resume Its Long-Term Uptrend

NEW YORK (TheStreet) -- Shares of cigarette maker Altria Group  (MO) look like they have made an important technical bottom and are ready to resume their long-term uptrend. 


The stock has soared over 400% since its 2008 low, while Altria pays one of the most consistently high dividends of any tobacco company.

Altria's weekly chart shows the stock coming off its March high and breaking through its 10-week (50-day) moving average, and then failing to recapture that average and dropping lower to retest former support in the $47.25 area. At this point, an interesting bullish "morningstar" candle reversal pattern formed, one that is defined by a large dark candle, followed by a narrow opening and closing range candle called a "doji," and completed by a large white candle. It reflects a transition from bearishness to bullishness and is often seen at important bottoms.

Click here to see the below chart in a new window.

The technical indicators, however, have not had a chance to make the transition. The relative-strength index is sitting on its centerline, and Chaikin money flow, which averages accumulation/distribution, remains in negative territory. On the daily chart, the morningstar pattern period looks like a "W" bottom, and on this time frame, the relative-strength index and the money-flow index, a volume-weighted relative strength measure, are both above or nearing their centerlines.

The stock price has recaptured its 200-day average and has established itself above multiple layers of support, and it looks poised to take on the next level of resistance in the $52.25 area.

Click here to see the below chart in a new window.


This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stock mentioned.

More from Opinion

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Many Chip Stocks Look Cheap Here, as Long as the Economy Holds Up

Many Chip Stocks Look Cheap Here, as Long as the Economy Holds Up

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites