In today’s stock of the day, let’s take a closer look at Philip Morris, which is getting closer to a major trading signal. The price has been coiling inside a symmetric triangle pattern marked with red lines since mid-July. This structure reflects a period of compression, where buyers and sellers are gradually narrowing the trading range, and it typically precedes a decisive breakout.
During September, the stock already tested both edges of the triangle. In the first half of September, the price approached the upper boundary, but momentum wasn’t strong enough to push through. In the second half of September, sellers tried their luck on the lower boundary, yet once again the breakout failed to materialize. With volatility contracting, we are getting very close to the apex of the formation, which means a breakout is imminent.
Trading this setup is straightforward: a breakout to the upside would confirm renewed buyer dominance and generate a buy signal with potential for a fresh bullish leg. On the other hand, a breakout to the downside would shift sentiment into bearish territory and activate a sell signal, opening the way for a deeper correction. Traders should keep their eyes on this setup, because whichever direction the breakout takes, it could define Philip Morris’ mid-term trend.