Open Free Account


[JSE:BTI] British American Tobacco "lighting up" - Technical Take

Paul Chakaduka


[JSE:BTI] British American Tobacco

"Lighting Up" - Technical Take


Direction: Long (BUY)

Entry: 87600c

Stop: Loss: 85000c

Take Profit: 92000c


Volatility remains the only constant on the local market, providing fertile conditions for short term traders.  This week I am going to look at a household name that has stood the test of time. BTI has been trading in a well-defined range since it broke higher in April of this year (as shown on the chart below).  This mega cigarette producer has been on the acquisition trail and has finally completed the purchase of Reynolds in the USA, which will make it one of the largest cigarette producers in the USA. As depicted below the share has bounced off the support line at 88000c and has traded to as much as 92000c in the same move on numerous occasions. There is a support line from December 2016(the blue line), I anticipate the share will retest this line, aggressive buyers can enter half of their position here at 88600c.  If this support breaks the share could test the bottom of the channel at 88000c, which would be the ideal entry point.  I have placed a stop loss at 85000c the dotted red line, as there is an opening gap that could be filled on a move lower.

jse bti technical take british american tobacco.jpg

Source: Bloomberg 2017


Fell free to contact our desk if you want to discuss the trade or require assistance: +27 87 940 6108

Wishing you profitable trading.


Paul Chakaduka | Trading Specialist at GT247.com

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

Want to trade CFD Equities, Forex, Indices & Commodities on the most affordable online South African trading platform?
Start Trading Now