There seems to be a big rotational move going on in the stock market here as we head for the end of the trading year … one of the stocks that I noticed on my ATR scan last night was PM. Here are the charts …
PM – Monthly Chart
While it is true that the ATR break that I noticed on my scan was from the 195-min chart, I always like to understand the bigger time frame charts when I am looking at any trade candidate. You can see that the monthly chart shows us that price has been pulling back the past several months, but that price has still stayed above the ATR support level and therefore, PM is still officially in an uptrend on the longer-dated chart.
PM – Weekly Chart
Is the monthly chart going to find support and then move higher and fail at either the SLOT resistance zone or go on to make new highs? Only time will tell … if monthly support is at hand, this consolidation of late will lead to a move higher. If the consolidation is just a bear flag, price will fail to bounce meaningfully, and even may extend the downward monthly move.
PM – Daily Chart
Price is still below the daily ATR resistance level of $105.14 … a break of this level on a closing candle basis, AND THEN an acceptance of that ATR break is needed to really confirm that the weekly consolidation is not a bear-flag setup.
PM – 195 Minute Chart #1
You can see here the break of the 195-min ATR resistance level yesterday that I noticed on my ATR scan. Some of the chart indicators are telling me that this move here could push a little higher at a minimum, so I am going to look at putting some capital to work with PM here if I can get a good intra-day entry over today and tomorrow. The rotation into this oversold name could last several weeks here as we head into year-end.
PM – 195 Minute Chart #2
The Price Momentum & Squeeze Indicator shows that we just came out of a 25-bar squeeze condition with the last bar of the day yesterday. The Trend Strength Histogram has burned off the extreme-trend strength warning signal, and price may be ready to begin moving again. Maybe the trend direction coming into the consolidation will reassert itself again here soon and price will head lower, but it looks like there is a good chance that we could get a several day bounce higher instead – I prefer to try and get long here rather than short.
Cheers … Leaf_West