IMPERIAL by name & nature - BUY
REASONS TO BE BULLISH
REASONS TO BE BEARISH
* Across many other assets, I am seeing potential capitulation in stocks going into June/July this year.
* It could retrace 10-20% along with more risky assets, but I suspect it will hold it's own for years to come.
* Stop would be at £338 - which would represent a 33% loss. That would put-in a new lower low and likely lead to more downside and a negated bull-run.
SUMMARY
In times of market conditions and the stagflation that we find ourselves subjected to, IMB is a solid buy and a great risk-reward entry here. Despite it's low expected volatility, it will likely provide a decent dividend and return on investment. IMB has a chance of keeping-up and in fact exceeding inflation. That is not to be sniffed-at, with the meme stocks facing their day of reckoning. We'll keep an eye on this one, as this indicator has provided 2 entries at £1,671 and £1,770 recently. Enjoy and thanks for reading!
- Price just reclaimed the 50 MA and is hovering right at the 100 also (£1,817).
- RSI on the 2 week chart recently turned bullish, coinciding with reclaiming the 50 MA.
- Trend line + MA cross = Bullish Entry. These are my favourite trades when the two signals cross the threshold on the same candle. Double confirmation.
- Further upside will see both cross above the 200 MA (the top of the purple channel at £2,575), which will further cement its place in a bull market.
- Imperial Brands are currently paying out a 7.8% dividend yield. Fundamentally, investors wire going tol flock to dividend paying stocks en masse.
- They have a price to earnings ratio of 7.27 which is very low by market standards. UK FTSE is trading at
- The stress of a downturn in market, trade & geopolitical conditions is likely to increase people's dependency on the products they produce.
- UK stock market is not over-leveraged, particularly not in value stocks like IMB.
- Has already endured a 6 year bear-market.
- Initial profit target is at £4.2k-£4.7k (the mid-point), which also coincides with it's prior all-time high. Here it will likely take a breather and form a cup and handle for a year or two (like April 2012 to April 2014).
- Has the potential to approach the top of the channel at £7k to £14k in the decade ahead.
REASONS TO BE BEARISH
* Across many other assets, I am seeing potential capitulation in stocks going into June/July this year.
* It could retrace 10-20% along with more risky assets, but I suspect it will hold it's own for years to come.
* Stop would be at £338 - which would represent a 33% loss. That would put-in a new lower low and likely lead to more downside and a negated bull-run.
SUMMARY
In times of market conditions and the stagflation that we find ourselves subjected to, IMB is a solid buy and a great risk-reward entry here. Despite it's low expected volatility, it will likely provide a decent dividend and return on investment. IMB has a chance of keeping-up and in fact exceeding inflation. That is not to be sniffed-at, with the meme stocks facing their day of reckoning. We'll keep an eye on this one, as this indicator has provided 2 entries at £1,671 and £1,770 recently. Enjoy and thanks for reading!
כתב ויתור
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