Will British American Tobacco turn, or will it continue rising to 3449p Nov highs?

• Shares +33% from Jan lows; +15% in the past week
• Now trading 3104p (at the time of writing).
• Will the positive momentum continue towards 3449p Nov highs?
• Shares -0.4% from 2019 highs; +32.7% from 2019 lows; +24% year-to-date.
• 6 Mar: Rally after the resignation of US FDA head Gottlieb who advocated a ban on menthol.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading British American Tobacco – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of British American Tobacco using a CFD, at the current price of 3104p. To do this, you need £2,000.

Let’s assume the British American Tobacco trend continues to 3449p Nov highs (+11.1%). Your profit would be £1110, 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. British American Tobacco falls 3% and hits your stop-loss. Your loss would be £300.

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