Explanation to Bollinger's Bands

Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.

Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.

Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation

BandWidth defines the current width of the band.
%b defines the current position within the band.

BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)

Live Samples:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.

Source: http://www.bollingerbands.com

RSI low/high Values: [ 20 - 80 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of BATS.L
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British American Tobacco p.l.c. stock upgraded from Sell Candidate to Buy Candidate after Wednesday trading session.
(Updated on Mar 27, 2024)

Buy candidate since Mar 27, 2024 PDF

The British American Tobacco p.l.c. stock price gained 0.97% on the last trading day (Wednesday, 27th Mar 2024), rising from £2,366.00 to £2,389.00. During the last trading day the stock fluctuated 1.92% from a day low at £2,349.00 to a day high of £2,394.00. The price has fallen in 6 of the last 10 days and is down by -0.27% for this period. Volume fell on the last day by -4 million shares and in total, 7 million shares were bought and sold for approximately £16.64 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

The stock is moving within a horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect British American Tobacco p.l.c. stock with a 90% probability to be traded between £2,328.00 and £2,540.78 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

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BATS.L 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 £2,382.14 and £2,371.09. A breakdown below any of these levels will issue sell signals. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, March 19, 2024, and so far it has fallen -0.95%. Further fall is indicated until a new bottom pivot has been found.

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

British American Tobacco p.l.c. finds support from accumulated volume at £2,366.00 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 £45.00 between high and low, or 1.92%. For the last week the stock has had daily average volatility of 1.37%.

Our recommended stop-loss: £2,305.22 (-3.51%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 6 days ago.)

Trading Expectations (BATS.L) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect British American Tobacco p.l.c. to open at £2,377.33, and during the day (based on 14 day Average True Range), to move between £2,347.34 and £2,430.66, which gives a possible trading interval of +/-£41.66 (+/-1.74%) 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 3.49% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at £2,395.50 (0.27%) than the support at £2,366.00 (0.96%), 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?

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for British American Tobacco p.l.c. stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Buy candidate.

Current score: 3.774 Buy Candidate Upgraded

Predicted Opening Price for British American Tobacco p.l.c. of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
£2,377.33 ( 0.488%) £2,389.00

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

Trading levels for BATS.L

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 2,422.33 1.40 %
R2 2,405.14 0.676 %
R1 2,394.52 0.231 %
Current price: 2,389.00
Support S1 2,360.14 -1.21 %
S2 2,349.52 -1.65 %
S3 2,332.33 -2.37 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 2,484.00 3.98 %
R2 2,399.00 0.419 %
R1 2,395.50 0.272 %
Current price 2,389.00
Support S1 2,366.00 -0.96%
S2 2,340.50 -2.03%
S3 2,333.00 -2.34%

BATS Dividend Payout History


# Declaration Date Ex-Date Pay Date Amount Yield
1 Dec 19, 2024 Dec 19, 2024 Feb 03, 2025 £58.88 2.46%
2 Sep 26, 2024 Sep 26, 2024 Nov 01, 2024 £58.88 2.46%
3 Jun 27, 2024 Jun 27, 2024 Aug 02, 2024 £58.88 2.46%
4 Mar 21, 2024 Mar 21, 2024 May 02, 2024 £58.88 2.46%
5 Jul 13, 2023 Jul 13, 2023 Jul 13, 2023 £57.72 2.29%

FAQ

What is the symbol for British American Tobacco p.l.c. Stock and on which exchange is it traded?
The symbol for British American Tobacco p.l.c. is BATS.L and it is traded on the XLON (London Stock Exchange).

Should I buy or sell British American Tobacco p.l.c. Stock?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for British American Tobacco p.l.c. stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Buy candidate.

How to buy British American Tobacco p.l.c. Stock?
British American Tobacco p.l.c. Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy British American Tobacco p.l.c. Stock.

What's the current price of British American Tobacco p.l.c. Stock?
As of the end of day on the 2024-03-27, the price of an British American Tobacco p.l.c. (BATS.L) share was £2,389.00.

What is the 52-week high and low for British American Tobacco p.l.c. Stock?
The 52-week high for British American Tobacco p.l.c. Stock is £3,022.20 and the 52-week low is £2,233.00.

What is the market capitalization of British American Tobacco p.l.c. Stock?
As of the 2024-03-27, the market capitalization of British American Tobacco p.l.c. is 53.251B.

When is the next earnings date for British American Tobacco p.l.c.?
The upcoming earnings date for British American Tobacco p.l.c. is Jul 24, 2024.
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About British American Tobacco p.l.c.

British American Tobacco p.l.c. British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. It offers vapour, tobacco heating, and modern oral nicotine products; combustible products; and traditional oral products, such as snus and moist snuff. The company offers its products under the Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Camel, Newport, Natural American Spirit, being Vapour, THP, and Modern Oral brands. It distributes its product... BATS.L Profile

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