Is this breakout a good trade for you?
Will Imperial Brands turn, or will it continue to rise to Nov highs of 2790p?
- Breakout above 2498p to trade 2562p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 2790p?
- Shares -20.6% from 2018 highs; +13.2% from 2018 lows; +7.8% year-to-date.
- 29 Jan: Piper Jaffrey upgrades British American Tobacco, helping sector rally
- 29 Jan: Piper Jaffey sees 10 year delay before menthol ban legislation
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Imperial Brands – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 2790p . You decide to buy exposure to £10,000 worth of Imperial using a CFD, at the current price 2562p (at time of writing). To do this, you need £2,000.
Let’s assume the Imperial trend continues upwards to 2790p Nov highs (+8.9%). Your profit would be £890, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Imperial breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.