JSE:BTI BRITISH AMERICAN TOB PLC
BTI has recovered the falling wedge support, now above the 200 week moving average as well. The convergence of the 200WMA & wedge support represents a strong support that should guide price upwards & confirm a weekly low price by closing above the pink resistance. On a daily timeframe we see price seeking a half cycle correction. Worth noting on daily time frame the pink resistance coincides with the 200DMA. This resistance can send price into a daily cycle low, if that is set above price of R595.38 it presents a good buying opportunity with high confidence that 15 June is a weekly low.
BTI is seeking a half cycle correction of a failed daily cycle, a small bounce before price trends downwards. The share is in week 41, if it wants to continue following the DXY strength & weakness then it is best to activate a stop loss or exit at relief out of half cycle correction. The longest weekly clocked 53 weeks, that is plausible given the bearish setup of the DXY.
BTI likely had a daily cycle high and now moving into a cycle low, the current cycle is right translated giving credence to 18 July being an ICL.
The current trajectory means that BTI is in daily cycle 2, we are within time for a half cycle correction but the lurking ex-Dividend date might push the share into an early cycle low. Price seems to be mimicking a Wykoff accumulation phase, however key is the low of 23 August, any lower than that means cycle has failed and will go down for longer.
We must be open to BTI having a longer cylce of 66 days, so we are enroute to confirm a cycle low, a close above the 10MA is reasonable entry for a long position with R577.39 as a stop-loss.