BAT – HIGHER TARGET
Trend: Short and medium term up. Long term sideways to up.
Strategy: Buy for a short-term rally. BAT has formed a declining channel over the past few weeks (lines 3 and 4). It’s likely to break out to the upside from that. The big picture is a large broadening formation (lines 1 and 2). The daily stochastic oscillator (on top) is oversold, which is a bullish set-up. Buy on either a close above line 4 or on a pullback to below R254. (The latter is more aggressive.) Note: Line 4 was at R257,15 on Monday 10 August. The minimum upside target is R268,50, measured as the height of the channel projected up. Take profits there. Note: That will be a retest of its February all-time high of R267,83 (which will provide resistance up there). Note: Line 2 is at R278. Keep the initial stop-loss quite wide as a close below R246. But once it closes above line 4 raise your stop to a close below R253,50.