Altira Group Inc. (MO) is set to report fourth-quarter earnings on Thursday. Regardless of the numbers investors and analysts are looking for, the charts and indicators of this cigarette manufacturer are bullish.
Let's take a look.
In the daily bar chart of MO, below, we can see that the shares have traded sideways for the past year. Prices have largely stayed between $36 on the downside and around $44 on the upside. The shares are currently above the rising 50-day moving average line and above the bullish 200-day moving average line.
The trading volume has been improving since late October and the On-Balance-Volume (OBV) line shows a rise from late October and is not all that far from making a new high. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line.
In the weekly bar chart of MO, below, we can see that the shares were in a downtrending channel into early 2020 but then turned sideways. Prices are now above the bottoming 40-week moving average line.
The weekly OBV line has been strengthening since March and the MACD oscillator has just crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of MO, below, we can see a projected upside price target of $48.
In this weekly Point and Figure chart of MO, below, we can see a longer-term price target of $51.
Bottom-line strategy: I have no special knowledge of MO's earnings and am a former smoker (40 years next month) but the charts and indicators are bullish. Traders could go long MO here risking to $39. Add to longs above $43.08. Our price targets are $48 and then $51.
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