- After a long period of recovery, Imperial brand’s stock has faced rejection backed by huge sales.
- The stock breached a crucial support and looks weak as of now.
- 17.165£ is the next support and the last hope for its investors.
Imperial Brands plc, is a British multinational tobacco company headquartered in London and Bristol, England. The company was founded in 1636 and is highly known for manufacturing the highest-selling products in the world.
Another major positive for the company is its financial data. The company has a great revenue consistently over the years which shows its dominance in its industry. The past 2 quarters have been highly good, increasing the hopes for its investors.
Technical analysis for the Imperial Brands stock
The stock fell badly to 16.97£ levels in January but saw a constant recovery backed by a good amount of sellers. The stock formed a resistance at around 18.6£ levels and moved sideways for a few days. Huge sellers then entered the market pushing the stock to very low levels. The stock breached very strong support at 17.61£ and is currently headed to the next support at 17.165£.
The stock formed a bearish doji on the last trading day which is a highly negative sign. If the stock manages to recover to 17.61£ levels, we might then see an increased number of buyers for the stock.
A one-hour chart shows the stock struggling at the current levels pointing at a possible downside. The stock is at its 3-day low and chances for it to break it are high. 17.165£ remains our next target if the stock moves down.
The first challenge for the stock currently is to cross its previous support and now resistance at 17.610£ as that is a strong level and if the stock comfortably breaches that, a possible upside is expected. 18£ will be the next target in case the stock moves higher.
A buy entry can only be possible if buyers enter in huge quantities and consistently.
All technical indicators predict a downside to the stock so anyone willing to buy should wait for at least a few days until the stock shows a few signs of recovery. The upcoming few days are highly crucial as they will help us analyze the stock’s future movement.
Conclusion
The stock has seen a huge downside in the past few months and currently stands at a very crucial level. The stock many times has seen huge reversals from the level it is at currently. One should wait for a few days before making any move so as to understand the behavior of the market and only then make a decision.
Important technical levels
Major support levels- 17.165£ followed by 16.450£.
Major resistance levels- 17.610£ followed by 18£.
