BAT (4162) -Technical Analysis

Technical Analysis


- BAT shares prices decrease by around 50% from RM35.41 to RM17.60. A failing angel.

- BAT EPS 2019 has confirmed cant beat and/or match last year EPS 2018 (164.2 cents) and revenue recorded lower low due to serious penetration of illegal cigarette sales.

- Since Sept 06, 2019, we noticed that there are buying force enter markets to support BAT shares price and it slowed down the momentum of declining in BAT shares price. (Point A)

- Another strong buying force with high volume entered markets to support BAT shares price on Oct 14, 2019. (Point B)

- With the MACD line, we able to notice there is a deviate movement. BAT shares prices recorded lower low but MACD line increases steadily. It is a signal of change in the shares price.

- RSI entered the oversold level but BAT shares prices don't drop further than the previous low RM17.22.

- Thus, we concluded the decline in BAT shares price seen reflects all levels of a bad situation. (50% discounted shares price in Y2019)

- If BAT shares price able to trade above MA5, it is not a bad entry point for medium-term investment.

- Resistance level (1): RM20.690

- Support level (1): RM17.22


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