Will British American Tobacco continue falling, or will it rise again to 3200p?

• British American Tobacco shares -9.1% from March highs.
• Currently trading at 2923p (at time of writing).
• Shares -9.1% from 2019 highs; +25% from 2018 lows; +20% year-to-date.
• Can the stock recover to March highs?
• 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 3200p. You decide to buy exposure to £10,000 worth of British American Tobacco using a CFD, at the current price of 2923p. To do this, you need £2,000.

Let’s assume British American Tobacco recovers back to 3200p October highs (+9.1%). Your profit would be £910, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. British American Tobacco falls 7% and hits your stop-loss. Your loss would be £500.

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