Will British American Tobacco continue falling, or will it rise again to 3650p?

• British American Tobacco shares -33% from Oct highs; -43% from July highs
• Currently trading at 2503p (at time of writing).
• Shares -51.6% from 2018 highs; +1.5% from 2018 lows; +0.1% year-to-date.
• Can the stock recover to October highs?
• 21 Dec: Barrons says British American, Philip Morris International stocks ready to light up
• 12 Dec: BATS backs FY guidance, delevraging on-track, vaping to reach £900m revenues
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading British American Tobacco – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 3650p. You decide to buy exposure to £10,000 worth of British American Tobacco using a CFD, at the current price of 2503p. To do this, you need £2,000.

Let’s assume British American Tobacco recovers back to 3650p October highs (+45.8%). Your profit would be £4580, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. British American Tobacco falls 7% and hits your stop-loss. Your loss would be £700.

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