Will British American Tobacco break support, or will it rise again to recent 3214p highs?

• Rising support since mid-march with 4 bounces; also a sideways range
• Trading 3131p (at time of writing)
• Will the pattern repeat itself, rising back to recent 3214p highs?
• Shares -2.8% from 2019 highs; +34% from 2019 lows; +25.2% year-to-date.
• 28 Mar: Citigroup upgrades to Buy, ups target price; NGPs to boost revenue growth
• 20 Mar: UBS says shares have considerable upside if targets met
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading British American Tobacco – An Example

Let’s say you like the British American Tobacco range, you think it’s heading back up to 3214p again. You decide to buy exposure to £10,000 worth of British American Tobacco using a CFD, at the current price of 3131p. To do this, you need £2,000.

Let’s assume British American Tobacco rises back to 3214p recent highs (+2.6%). Your profit would be £260, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. British American Tobacco falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.