Imperial Brands
A trading opportunity for you?
Will Imperial Brands break support, or will it rise again back to 2750p ?
- Imperial Brands has shallow rising support since April.
- Bounced off 2327p support zone this week.
- Now trading at 2372p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 2990p?
- Shares -25.6% from 2018 highs; +3.5% from 2018 lows; -25.1% year-to-date
- 16 Nov: Jefferies says menthol cigarette ban could be delayed for five years
- Tobacco considered non-cyclical defensive investment sector, sought out in times of economic weakness
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Imperial Brands – An Example
Let’s say you like the range, you think it’s heading back towards 2750p again. You decide to buy exposure to £10,000 worth of Imperial Brands using a CFD, at the current price of 2372p. To do this, you need £2,000.
Let’s assume Imperial Brands recovers back to 2750p (+15.9%). Your profit would be £1,590, 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 Brands falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.