British American Tobacco
A trading opportunity for you?
Will British American Tobacco break support, or will it rise again back to 2784p?
- British American Tobacco has horizontal support around 2466p since late Dec.
- Bounced of support 5 times; latest bounce on Monday.
- Now trading 2549p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 2784p December highs?
- Shares -5.6% from 2019 highs; +2% from 2019 lows; +2% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading British American Tobacco – An Example
Let’s say you like the British American Tobacco trend, you think it’s heading back towards 2784p again. You decide to buy exposure to £10,000 worth of British American Tobacco using a CFD, at the current price of 2549p. To do this, you need £2,000.
Let’s assume British American Tobacco recovers back to 2784p December highs (+9.2%). Your profit would be £920, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. British American Tobacco falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.