Chart of the Day: Imperial Brands (IMB) #IMB

Of course, these days “Sin” Stocks are part of the thought crime / PC  straightjacket nightmare we are living in, of which George Orwell’s dystopian offering “1984” highlighted so well.

On this basis it is almost worth having the stocks in one’s portfolio as a protest vote, even if you do not smoke. Clearly, Imperial Brands has realised the pressure it is under, even though as we know now, sugar has killed many more people than tobacco.

imb

Following on the theme, the tobacco giant has move to sugar coat its fundamentals with a revamped dividend policy / £200m share buyback. This comes hot on the heels of a buy note from Liberum on July 4, although strangely enough the shares gapped up the previous day. The chart gap currently leaves an Island Reversal and W shaped rebound on the daily chart, something which may encourage the bulls. While the recent torrid history of the stock may mean that it is wise to wait for the 50 day moving average at 2,059p to be broken before calling a sustained rally, the shares look to be in the mood for a retest of May resistance towards 2,200p even if the recovery fades after that. The floor of the gap at 1,943p will be key in coming days as likely support.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

Leave a Reply