Imperial brands: new down leg in sight?
Nicolas Suiffet May 19, 2020 3:40 AM
Imperial Brands, the tobacco company, reported that 1H operating profit dropped 19.6% on year to 925 million pounds on revenue of 14.67 billion pounds.
Imperial Brands, the tobacco company, reported that 1H operating profit dropped 19.6% on year to 925 million pounds on revenue of 14.67 billion pounds. The Company said it will rebase its dividend by one third, implying an annual dividend for 2020 of 137.7p per share.The Company said: "We are disappointed with these results; COVID-19 has so far had only a small impact on trading but we expect this to be more pronounced in the second half due to continued pressures on our duty free and travel retail business."
From a technical perspective, the stock price remains in a down trend within a long term bearish channel. The declining 50-day simple moving average is playing a resistance role. The Relative Strength Index (RSI, 14) remains below its neutrality area at 50%. As a consequence, a continuation of the down trend is expected.
Readers may want to consider the potential for short positions below the resistance at 1890p (channel upper boundary) with a first target at 1258p and then 1040p.
Only a break above 1890p would invalidate the bearish scenario and would call for a reversal up trend towards the horizontal resistance at 2330p.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.