Shares of Philip Morris International (PM) , which have suffered a big decline since 2017, have improved modestly in recent weeks. But have prices and the indicators improved enough to tell us that a bottom is in? Let's check out our usual package of charts of this stock discussed by Jim Cramer Monday night on Mad Money.
In the daily bar chart of PM, below, we can see that prices have moved up from an early June low. PM is above the rising 50-day moving average line. The volume of trading does not show a rising pattern, which would be positive and the daily On-Balance-Volume (OBV) line does not show much in the way of bullish movement.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but the two averages that make up this indicator have narrowed toward a possible bearish crossover.
In this weekly bar chart of PM, below, we can see that prices are well below the declining 40-week moving average line. The weekly OBV line shows improvement the past two months but it is short of a new high.
The weekly MACD oscillator crossed to a cover shorts buy signal in early July but this indicator is well below the zero line and a long way from an outright buy signal.
In this Point and Figure chart of PM, below, there is a price target of $108.27 being projected.
Bottom-line strategy: PM has come off its June low but this does not make it a durable bottom pattern that can support a sustained move to the upside. PM is likely to drift back down to the $80 area again.
