Share price drama expected at BAT
Despite a bounce from April's lows and a yield above 9%, independent analyst Alistair Strang is wary about the tobacco and vaping giant's share price.
17th July 2024 07:33
by Alistair Strang from Trends and Targets
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British American Tobacco (LSE:BATS)'s share price decline from 2017’s unfathomable high has led it to currently just under 50% of such a level, leading us to fear more drama may yet come.
While the Red uptrend since 2008 has recently experienced a couple of solid confirmation footfalls by the share price, we’re inclined to suspect more reversals are coming.
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Currently below 2,340p would tick a pretty major box for concern, risking triggering reversals down to an initial 1,982p, something with quite devastating visual implications. Our secondary works out at a longer term 1,416p and hopefully a bottom as it rather neatly matches the prior low of 2018.
Conversely, BATS would need above 2,575p to give the first dusting of hope, potentially triggering recovery to an initial 2,717p with secondary, if beaten, at 2,881p.
Only with closure above this secondary level shall we dare hope some true recovery may be lighting things up.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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