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.
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.