BTI -Charting discussion

I’ve been experimenting with the scanning capabilities of my trading software (Optuma) and it threw up BTI a stock I haven’t traded previously but bought into today.

I thought I’d share some analysis I did on BTI. There were a few disparaging comments on HC re the stock but everything in my TA came up roses – so we’ll see where it goes.

• The stock is in a technical uptrend (black diagonal line on chart), making higher highs and lows on the weekly chart.
• It has probably just completed a Elliott Wave 2 and is rising on W3 which is the strongest and longest rising wave in a cycle.
• It’s a bit illiquid as turnover is less than I like.
• The strongest tick it gets from me is that it’s made a cup and handle pattern with volume on the handle break of resistance (drawn in red) with targets of $1.16 and $1.25 (the latter offering an 11% profit on my buy price).
• Price seems to react to time lines (vertical lines on chart) and they suggest price should go higher.
• Company provides seed capital for emerging hi-tech companies (read high risk).

Horizontal lines are software generated probable resistance levels based on the premise natural resistance occurs at regular intervals. Numbers are Elliott Wave identifiers.