Philip Morris International Inc. stayed in an up-trend from 2010 to 2013 (solid line). In June 2013, the stock declined below its 40-week moving average (40wMA) and below the trend-line. In addition, the 40wMA started to fall and the price failed to rise above this average during subsequent attempts (A).
A pattern of lower highs and lower lows clearly indicates negative investor sentiment toward this stock (dashed lines). In fact, selling pressure pushed the stock below the $83 (U.S.) level (dotted line) which should have provided support. The 40wMA is currently at around $86 and will provide considerable resistance.
Point & Figure measurements provide targets of $70 and $65.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.