Will British American Tobacco turn, or will it continue to rise towards 3657p?

• Breakout above 3070p; Now trading 3155p (at time of writing).
• Could they recover to prior highs of 3657p?
• Shares -0.1% from 2019 highs; +35% from 2019 lows; +26.2% year-to-date
• 13 Mar: Canadian Unit gets creditor protection from litigation
• 6 Mar: FDA Chief’s exit sparks gains for British American Tobacco
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading British American Tobacco – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 3657p. You decide to buy exposure to £10,000 worth of BATS using a CFD, at the current price of 3155p. To do this, you need £2,000.

Let’s assume the BATS trend continues to highs of 3657p (+15.9%). Your profit would be £1590, 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. BATS 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.