Odds of a breakout for this stock are high

TL;DR

British American Tobacco (BAT) has followed the chart predictions with a rally and corrective move, but trading based on fundamentals can be unpredictable, as shown by the underperformance of Imperial Brands.

Transcript

hello it's John Burford with chart of the week for Tuesday the 28th of May and I'm covering b8e British American Tobacco again which I started covering right here on the January January low as it met my lovely lower tramline here and my forecast then was for a rally up to the upper tram line and as you can see this is exactly what happened this is ... Read More

Key Insights

• 🧑‍🏭 Chart analysis and sentiment readings can be more reliable indicators for trading than fundamental factors.
• 💹 British American Tobacco's price movement has aligned with the chart predictions, confirming the trader's forecast.
• 🤕 Imperial Brands, despite the potential advantage of the menthol cigarette ban, has underperformed according to chart analysis.
• 🎚️ A pullback to the 62% retracement level may occur for British American Tobacco, but a renewed rally is also likely.
• 🧘 The trader took profits in a certain area and reinstated positions, indicating active management of the trading strategy.
• 🚙 The decision to choose British American Tobacco as the trading vehicle highlights the importance of chart analysis and sentiment readings.
• 🏈 The trader's upper targets for British American Tobacco are around the 32 to 34 pound area.

Questions & Answers

Q: How has British American Tobacco's price movement aligned with the chart predictions?

British American Tobacco's price movement has followed the chart predictions, rallying to the upper tramline and confirming the forecasted rally.

Q: Why did the trader choose to trade British American Tobacco instead of Imperial Brands?

The trader chose British American Tobacco due to chart analysis and sentiment readings, disregarding the fundamental factor of menthol cigarette ban, which has caused underperformance in Imperial Brands.

Q: What is the potential downside for British American Tobacco?

There is a possibility of a pullback to the 62% retracement level, but the trader does not give it greater odds than a renewed rally above the current level.

Q: What are the upper targets for British American Tobacco?

The upper targets for British American Tobacco are around the 32 to 34 pound area, according to the trader's analysis.

Summary & Key Takeaways

• The chart analysis of British American Tobacco predicted a rally to the upper tramline, which has been confirmed by recent price movements.

• The decision to choose BAT over Imperial Brands as the trading vehicle was based on chart analysis and sentiment readings rather than fundamental factors.

• BAT may experience a pullback to the 62% retracement level, but a renewed push above the current level is also likely.