- While BTI remains above R600, im looking to accumulate for an upside leg
- Defensive stock and great dividend payer
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Entered a long trade a while ago after it broke the trading range.
Now BTI traded into the range where I am entering a short position for a pullback.
My target for the short is 62500 with a tight stop loss.
We give a quick recap of markets overnight and the previous day and insights into the day ahead with a few trade ideas on the day. Ideas are strictly NOT INVESTMENT ADVICE.
JSE:BTI has had a great run. Currently at a resistance level, and trading lower for the week. Red close for the week might open a window for a short trade targeting the recent breakout level, R590-ish region.
46.62-47.79 was a strong support area for BTI during 2012-2018, now after 3-4 years of consolidation it looks like its ready to break back above?!
If it does break back above look for a rally to 54.34-65.71-77.08
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Below 67600 supports a bearish trend direction.
Downside price momentum supports the bearish setup.
RSI is overbought - increasing the likelihood of a throwback.
Trend strength also indicates a strong trend that precedes a correction.
Correction might only be temporary.
Let's start from the fact that we all see a diamond shape (reversal pattern) in the bottom after major drop from 2018.
Most popular target for BTI is just above $50 where mid-term supply zone is.
Confident growth of the last two months hints at the prospects for an upward exit from the three-year side-trend.
The main risk is the high debt level. The ratio of...
- BTi has had a spectacular rally off the longterm consolidation period as its come into favour being a rotation/defensive trade.
- On Friday it broke out to make a new 52 week high (flat top triangle breakout)
- Not much to do but follow the trend with major resistance zone being closer to the R700 mark.
Looking for a hourly break and close above 59100 to enter a long position, and hopefully will have a daily close above 59100.
BTI has been range bound since October 2020 and might finally break out of the trading range.
My target for now will be 64000.
JSE:BTI is trading in a parallel channel and has recently bounced off the bottom on its way up. It is also showing some nice upward momentum. I would say that we are looking at an upward move towards at least the 55000 level if not further up towards the top of the channel.
British American Tobacco (BTI, 52040c) - Equity holders of the share should take cognizance of the long-term technical risk as the price continues to trade near its horizontal support zone at 50880c while currently breaching the incline support in place since the swing lows of January 2019. The aforementioned horizontal support has remained in place since August...
Weekly inside break to the upside
Target and Stoploss on the chart
A wider stop can be place at the bottom of the weekly range R511
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
