Is this breakout a good trade for you?

Will Imperial Brand sturn, or will it continue to rise beyond 2740p?

• The chart shows the last 2 months’ price action for Imperial Brands.
• The shares have broken above a horizontal resistance level around 2705p to trade 2740p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back 2995p August highs?
• Shares -14.1% from 2018 highs; +19.4% from 2018 lows; -13.5% year-to-date.
• Defensive shares like Tobacco benefiting from stock market correction
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Imperial Brands – An Example

Let’s say the Imperial Brands breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Imperial Brands using a CFD, at the current price of 2740p. To do this, you need £2,000.

Let’s assume the Imperial Brands trend continues upwards to 2995p (+9.3%). Your profit would be £930, 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 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.