Will British American Tobacco turn, or will it continue to rise towards 3214p?

• Breakout above 2950p; Now trading 2992p (at time of writing).
• Could they recover to prior highs of 3214p?
• Shares -7.1% from 2019 highs; +28.1% from 2019 lows; +19.8% year-to-date
• 30 May: Fitch affirms British American Tobacco at ‘BBB’; Outlook Stable
• 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 3214p. You decide to buy exposure to £10,000 worth of BATS using a CFD, at the current price of 2992p. To do this, you need £2,000.

Let’s assume the BATS trend continues to highs of 3214p (+7.4%). Your profit would be £740, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BATS breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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