Will Imperial Brands turn, or will it continue to rise to Nov highs of 2790p?

• Breakout above 2498p to trade 2562p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 2790p?
• Shares -20.6% from 2018 highs; +13.2% from 2018 lows; +7.8% year-to-date.
• 29 Jan: Piper Jaffrey upgrades British American Tobacco, helping sector rally
• 29 Jan: Piper Jaffey sees 10 year delay before menthol ban legislation
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Imperial Brands – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 2790p . You decide to buy exposure to £10,000 worth of Imperial using a CFD, at the current price 2562p (at time of writing). To do this, you need £2,000.

Let’s assume the Imperial trend continues upwards to 2790p Nov highs (+8.9%). Your profit would be £890, 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 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.