NEW YORK – Philip Morris International (PM) shares rallied during Friday’s trading session, closing with solid gains and pushing past the key $181 mark. However, a notable drop in after-hours trading could signal a potential pullback when the market reopens on Monday.
The tobacco giant finished the official trading day at
1.72 (0.96%). The stock showed robust momentum throughout the day, opening at $178.82 and climbing steadily to an intraday high of $181.30, demonstrating strong investor confidence. This performance brought the stock closer to its 52-week high of $186.69, a level traders will be watching as a potential point of resistance.
Despite the strong close, sentiment appeared to shift after the bell. In after-hours activity, the stock fell
180.00. This late-day selling pressure erased more than half of the day’s impressive gains and suggests that some investors may be taking profits ahead of the weekend.
Outlook for Monday:
The contradictory signals from Friday’s session set the stage for a pivotal start to the week.
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Bearish Case: The after-hours decline is the most significant indicator for Monday’s open. Often, after-hours trading reflects institutional sentiment and can foreshadow the direction of the next session. Traders should anticipate potential opening weakness, with the stock likely to test the psychological support level of $180.00. A break below this could see the price drift back towards the day’s opening levels around $179.
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Bullish Case: Friday’s regular-session strength should not be dismissed. The move was decisive and on good volume, indicating that buyers are still interested. If pre-market trading on Monday shows renewed buying interest, the after-hours dip could be seen as a minor consolidation. The stock’s healthy dividend yield of 2.98% also provides a floor of support, attracting income-focused investors who may see any dip as a buying opportunity.
Given the significant drop in after-hours trading, Philip Morris International is likely to face downward pressure at Monday’s market open. Investors will be closely watching whether the stock can hold the critical $180 support level. If it fails, a further slide is probable. If buyers step in to defend that level, it could signal that Friday’s rally still has momentum.
