Eamonn Mcginty @MCGINTYE: "𝘽𝙧𝙞𝙩𝙞𝙨𝙝 𝘼𝙢𝙚𝙧𝙞𝙘𝙖𝙣 𝙏𝙤𝙗𝙖𝙘𝙘𝙤 - 𝙏𝙝𝙚..."

United Kingdom

𝘽𝙧𝙞𝙩𝙞𝙨𝙝 𝘼𝙢𝙚𝙧𝙞𝙘𝙖𝙣 𝙏𝙤𝙗𝙖𝙘𝙘𝙤 - 𝙏𝙝𝙚 𝙏𝙧𝙚𝙣𝙙 (𝙨𝙩𝙞𝙡𝙡) 𝘾𝙤𝙣𝙩𝙞𝙣𝙪𝙚𝙨! 📈 𝙎𝙪𝙗𝙟𝙚𝙘𝙩 $BATS.L (British American Tobacco) Technical Analysis Although I keep a watchful eye on price charts daily for entry points, I don't often write posts on technical analysis – fundamental analysis is my key investment driver. However, the price action in $BATS.L has once again caught my attention and I thought I'd follow up on my analysis from almost 1 year ago. After spending most of the last decade trapped below the £50 level, the shares have surged 15% this week and are currently changing hands at around £49 a share — the highest level since 2017. Back in Sep 2016 and Dec 2017, the £50 area acted as major resistance. After the last failed attempt to clear £50, the share price fell dramatically below £42 per share, where it remained for the following 7 years as per the subject of my last post: 🔗 etoro.tw/3PqL6pk Until now. The stock first reclaimed the 200-week moving average in 2024. It then broke through resistance at £42 earlier this year, a level that had repeatedly capped advances since 2018 and 2025. This week’s explosive move has carried BATS to that critical £50 level where it managed to trade, for about 5 minutes before falling off back to £49! What lit the fuse? Investors continue to respond positively to BAT’s improving fundamentals: a 2026 £1.3bn share buyback, positive news on the profitability of their next-generation products, ongoing debt reduction and resilient cash generation – all supporting a dividend yield of around 5%. The market is increasingly treating $BATS.L as both a defensive income stock and a credible source of earnings growth. If £50 is convincingly cleared, the next major resistance on the chart sits near £56. However, I expect resistance to be very strong given the history of the level and wouldn't be surprised to see a return to support around the £45-£42 level first. That's all for now. Happy Friday to all my Copiers and Followers! Eamonn MCGINTYE $BATS.L $UK100 ⚠️ Risk Warnings ⚠️ Your capital is at risk. Past performance is not indicative of future results. The value of your investments may go down as well as up. Copy Trading is not investment advice. Show Less

Not investment advice. The author may have financial interests in the mentioned instruments.

2 Mentioned

BATS.L

British American Tobacco

UK100

UK100 Index (Non Expiry)

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