Will Imperial Brands turn, or will it continue to fall to new yearly lows of 2000p?

• Breakdown under 2282p to trade 2165p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 2000p?
• Shares -20.2% from 2018 highs; +3.3% from 2018 lows; -8.9% year-to-date.
• 8 May: Imperial Brands Pays Price for Late Engagement With Vaping Vogue: CMC Markets — Market Talk
• 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 2000p . You decide to buy exposure to £10,000 worth of Imperial using a CFD, at the current price 2165p (at time of writing). To do this, you need £2,000.

Let’s assume the Imperial trend continues downwards to 2000p new yearly lows (+8.2%). Your profit would be £820, 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.  Imperial breaks higher, rising 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.