Current trend

Shares of tobacco maker Altria Group Inc. are trading around 55.00.

The US Food and Drug Administration (FDA) has granted approval for the sale of NJOY menthol-flavored vape products, the most popular on the market, causing their price to rise by 46.0%. While traditional tobacco shipments fell 8.6% in the third quarter, NJOY devices shipments increased 100.0% (1.1 million units) in the quarter. On the back of positive statistics, Altria Group Inc. management improved its full-year earnings per share growth forecast to a range of 5.07 dollars to 5.15 dollars.

In turn, Barclays Bank experts raised their target price for the stock to 46.0 dollars from 45.0 dollars, despite maintaining their rating at Underweight, after the company's third-quarter report, in which it showed revenue growth to 5.34 billion dollars from 5.28 billion dollars in the previous period, and earnings per share rose to a historical high of 1.38 dollars. Additionally, Altria Group Inc. paid its first indexed dividend of 1.02 dollars per share, up from 0.98 dollars previously, while quarterly earnings reached a high of 7.70%, a key factor for investors when choosing an asset.

Support and resistance

The shares are trading within a local corrective trend, holding on the daily chart, just below the channel support line with boundaries of 61.00–57.00.

Technical indicators are holding a buy signal, which has recently intensified: the range of EMA fluctuations on the Alligator indicator stays wide, and the AO histogram is forming new corrective bars, being above the transition level.

Support levels: 54.40, 50.50.

Resistance levels: 56.00, 59.70.

Trading tips

If the index continues growing, and the price consolidates above the resistance at 56.00, long positions with a target of 59.70 and stop-loss of 55.00 will be relevant. Implementation time: 7 days and more.

If the asset reverses and continues declining, and the price consolidates below 54.40, short positions can be opened with the target at 50.50. Stop-loss — 56.00.