British American Tobacco p.l.c. Stock Forecast

British American Tobacco p.l.c. stock downgraded from Buy Candidate to Hold/Accumulate after Wednesday trading session.
(Updated on May 08, 2024)

BMT.DE Signals & Forecast

The British American Tobacco p.l.c. stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at 27.82€ and 27.62€. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 5.31%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Support, Risk & Stop-loss for British American Tobacco p.l.c. stock

British American Tobacco p.l.c. finds support from accumulated volume at 27.81€ and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved 0.350€ between high and low, or 1.26%. For the last week the stock has had daily average volatility of 1.24%.

The British American Tobacco p.l.c. stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: 26.93€ (-4.35%) (This stock has low daily movements and this gives low risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 15 days ago.)

Trading Expectations (BMT.DE) For The Upcoming Trading Day Of Thursday 9th

For the upcoming trading day on Thursday, 9th we expect British American Tobacco p.l.c. to open at 28.07€, and during the day (based on 14 day Average True Range), to move between 27.77€ and 28.53€, which gives a possible trading interval of +/-0.379€ (+/-1.35%) up or down from last closing price. If British American Tobacco p.l.c. takes out the full calculated possible swing range there will be an estimated 2.70% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at 28.26€ (0.39%) than the support at 27.81€ (1.23%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is British American Tobacco p.l.c. stock A Buy?

British American Tobacco p.l.c. holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: 0.356 Hold/Accumulate Downgraded

Predicted Opening Price for British American Tobacco p.l.c. of Thursday, May 9, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.