 Welcome to the channel. This is reliable Rudy in this video We're going to continue our analysis on BTI British American tobacco and we're going to focus mainly on the charting aspect of things in our last video we determined our projections for the company and This is the evaluations that we came up with if you haven't seen that video or the previous videos before that make sure you Go check those out. So you're up to date I'll post those cards up here in the top right to make it easy on you guys or you can simply go to my channel and Go look at the previous videos, but nonetheless, I'm not a financial advisor Everything in this video contains only my opinion as for entertainment purposes only I have no individual holding in BTI Not even in my index funds. I have nothing to gain nothing lose simply stating my opinion in this analysis So moving on to the chart Have a clean chart right here. I'm actually going to get rid of this there We go as clean a chart as it possibly gets. I am on a weak chart every candle represent today I can see the IP owed in 1977 I Had an initial run off the off the start right here now I do want to talk about this drop now in recent charting videos I have used the fib tool from top to the bottom move to mark out extension points Um, I should have made clear that with these types of drops right here I'm looking for wave structures. So look at how we gap down pretty much all the ways down underneath the dollar You see how we have this large gap down There's not any any correlating stuff inside of that that would make me want to put a fib tool from top to the bottom We'll besides the large fall and this is another good example right here just this large seal It's just a straight down drop and it happened in the course of one week one trading week But this drop right here, you can see we actually are getting some wave structures You have a you have an initial fall you retrace you try to hold that that support cracks You have a retest and then at the end of this wave structure you attempt to set this double bottom And then it goes on a run so there's a difference in doing that But for the sake of the video I already know because I've already looked at it nice I called it out originally from the beginning You are getting some action off your first extension right here you fight to get over over top of that price But ultimately got this gap filled now if I were to mark that gap It actually does have a direct wick go through it on a week very interesting I love I love looking at the gap fills and how it transpires and how it plays into supply and demand But nonetheless if I pull this across over here you can see That I mean we're getting rejected off our first extension you get on top of it for a little bit you push up to your second extension multiple times right here and Ultimately it continues to run bullish past it. It is getting some good traction But in terms of a full extension, it's very tough to say because I don't know what Corresponded on this date for a huge gap down like this. Obviously we are getting some some action based off of it But it's not a five-wave structure, and I'm not surprised that it keeps running bullish off this You got a nice trend line that's built. There was some initial sell-off off of it But it's tough to say when you're in terms of looking at full extensions And I already know what this one is well and both of these kind of have similar Extensions in both of them do get a little price action off the full extension double top sets in right here. That's definitely a Bull or a bear trap because the bears are expecting a sell-off right here But they just never come supply and demand people keep buying it up But it just so happens on the one Structure we actually have some nice fall right here just a nice drop. We actually do get some nice action off this I'm gonna show you guys That we do get this nice double top coming right here We put a double top at our previous all-time high. We fight at our first extension second extension third extension We get our double top coming and we do get another five-wave structure that comes in right here And this this there is a lot of good information to go over on this drop So we definitely will do that But I think it's very interesting how you take a top the move bottom move it marks out a full extension If you were buying in right here, you get a break the all-time high and you're looking for a full extension You got it. I mean and there is definitely clear sell-off off of that and every can of represents a week This was from the bottom a thousand dollar or a thousand percent run I mean, it's pretty impressive if I were to say so But nonetheless, let's get into some more of the technical analysis. I do like showing those examples right there Let's set our trend line in right here I'm looking for as many points of contact as possible I feel that kind of represents itself if I wanted to I could go onto a day chart and really look at how this Started because it'd be very hard to judge because in this time period right here. We have no like We don't have three points of contact. So it's very hard to judge how this is gonna pan out so I don't want to actually go in and Dive in closer to these points of contact right there and see if there is an original trend I know we can actually go do that I'm not actually sure if there's gonna be anything correlating in there but it's tough to say off of that one, but our original one I mean You could say You could say okay Let's get this through all of these right here and adding with that one final wick right there before we start getting bullish And then you get the higher low right here. You could say that's that's decently set right there But is it enough? Correlating evidence to say oh, yeah, I knew this was the exact way to set this so that we were gonna get this It would have been really tough to say but now that we have these trading days Where we can see the price action working with this trend line I really like how this looks and you know, it doesn't quite reach it right there But we come in direct contact right there almost at a gap So I can see this gap up right there it attempts to get down there But the trend line actually holds it up from getting down to that gap so that's very interesting that's how I'd probably set my long-term trend line for that and Looking at the current price. I mean We might be Meeting up with this trend line in the short term So we will talk about that but for this video We're going to mainly focus on just the history of the chart see what we can find and I might make another video where I Focus more on the short term So if you were expecting me to talk more about this area right here I might touch base with it a little bit, but that will be for the next charting video So nonetheless, we do get our full extension here. We get a nice five-wave structure now You could call this a double bottom Doesn't really look like too much of an inverse head and shoulders But if I were to take a retracement from here I want to see how this because when now we're getting closer. This is the Housing market crash right here. So, you know a lot of stuff was down a lot of stuff had patterns like this And it's easy for me to sit here and say but we do actually get correlation a double top come into my 702 right here There are people that are we're looking at this as a potential Five-wave structure a longer five-wave structure or at least retest these areas right here And you can see we do have initial sell-off now if we were to get that five-wave structure something like this There's our back test of wave one and this people could have easily looked at this double top in this 702 as okay We're getting ready for a five-wave structure reverting back to the long-term trend line So I think it's very interesting that just how many bull are bear traps were inside of this because right here This is a bear trap all day, but nonetheless. I mean you do have a trend line that ends up holding just like that Over the course of this time period and I mean it would have been hard that to judge that but once you get this kind of Solidified in I mean you stay bullish on top of this trend line for most of the time So yeah, that's very interesting how we get a nice double top in that 702 I see stuff like this all the time nothing new But nonetheless, let's look at our full extension here We get I mean we trade sideways on top of our first extension for a long time I'm gonna pull us always over you see how much action we trade in right here now when we actually do get a Confirmation when we do now it'd be hard to judge this at the time But you get this gap up you hold right at your first extension You have this little back test right there and then we hold hold hold a couple breakouts to the downside But nonetheless it holds and now we do get a nice double top into our second extension and we meet it again for a Third lower high look at that wick into that second extension. You think they came out with news This just so happens to be the beginning of January 2018 you think somewhere in this double top they came out with that news on that acquisition I'd want to go look at that Because you know it could have been planned by the company that okay we're gonna announce this acquisition and We are gonna dilute shares up here look at this double top in my second extension and look at this sell-off following the the acquisition in 2017 I mean this the stock price is definitely hammered right here. I mean there's no question about it. I Mean we have a 58% drop which is Is nonetheless, it's pretty common when you have a big acquisition announcement like that But obviously we haven't looked enough into that acquisition. I don't know if they got a fair price I don't know what type of premium they pay but we do know that they issued some shares they Issued some debt and they cut their dividend down and yeah And it's just crazy where the chart meets up when that 2017 acquisition Transpired so that is definitely something to keep mine especially this is this just adds to my my point that I've been making that Anytime you're dealing with acquisitions you gotta go look into them and get a better understanding Because just because they're announcing an acquisition doesn't mean that they're gonna have a huge sell-off right here there there's clearly a disconnect and investors mindsets when they announced that that acquisition and Ultimately we get this sell-off where do we revert back to we revert back to our long-term trend line where we put pretty much a Three higher lows onto this trend line. How's it gonna transpire when we get we come in contact with this again? But yeah, I think that's very interesting stuff now if you are buying this trend line and you're looking for a full extension I mean this is your full extension right here It just so happens that my full extension meets up right around that 100 flat now I don't know if I have this 100% accurately said But yeah, right around that 100. This is definitely a sell window if you end up getting that type of extension I would definitely be thinking about a potential sell in that area And if I were to match up the tops of this, this is actually a pretty parallel channel I just didn't have it marked in at the time But I mean you could take from these tops right here and it's pretty parallel But nonetheless, I'll take this extension out real quick nonetheless if I was gonna set this channel I just think you get a lot more price action off of taking these highs You see how we're fighting we're fighting to get on top of that We do get on top of it a couple times in here, but nonetheless This is how I'd probably have my channel set right there So I wouldn't be surprised that people had their channel set right here because you can see when we are on top This we we are getting price action on top of that as well And you see that right here as well So pretty interesting right there that the top of this channel is getting price action, especially dating all the ways back to November of 1990 so Pretty interesting right there. There's a couple more points that I want to get across before we Close out the history of this stock now if I were to be looking at this as okay. Here's my double bottom Here's my left leg right here We get a double bottom come in and we actually do get this extended right leg And I was looking at this in particular and calling this a neckline Now the reason why I started talking about this is because when we get this 702 right here Hope you guys can see why I'm drawing that in right there when we do get this double top into the 702 This is where we revert back to and we hold right here You see how we put this wick on top of my neckline right here Well at the time this is a this is not an extended right leg I would not be putting orders in off this neckline because I want to see this push over top of my left leg This is my left leg I want to see that right leg push over top of it and then once we get on top of that So right here. We're on top of it. I'm expecting one day. This is gonna back test the neckline If it does I'm gonna have an order there and I'm gonna take advantage of this So if I was drawing out this trade right here Where would I put my stop loss? I probably put it right in It's pretty tough to say and this is a I would probably have this neckline moved up just a little bit right there So call it 28 flat if I was putting a stop loss just to make it simple for the trade We got a six dollar risk right here So if I was buying this neckline, this is where I'd put my stop loss and we're looking at a six dollar risk reward My one-to-one risk reward. I'm just gonna map it out real quick. There's another six dollars There is another six dollars give or take and here is another six dollars give or take So you got in at at 28 you got a six dollar risk You're one the one put you at 34 your two to one put you at 40 your three to one put you at 46 if I go and transpire look back over here, you do get wicked in off this neckline in March 23rd of 2020 and this neckline was formed 11 years ago in 2020 or 2009 now that is that is just extraordinary right there that We end up getting this full extension had you bought this neckline looking for a three-to-one risk reward You got it right here. I mean that you hit pretty good on this trade had you had you have this mapped out right here I mean, that's a 68% trade nonetheless And that's not saying that a couple days after that you would have you would have hit your two-to-one risk reward in the matter of a couple of months 40% trade would have easily been able to get out. I see a lower high one two three a One two three four see how my wave four tries to get back to the bottom of wave one And then we get our wave five reverting back to my long-term trend line You could have gotten in again off this trend line And I mean there's so many different ways that you could have played this had you been buying this neckline But I think it's interesting that 11 years later. You're getting price action off that now Let's go talk about more about this entry So we so we know we got this this long-term trend line But as I stated it'd be so hard to be able to judge that third point of contact because we got one two Three how am I going to be able to judge it just so happens that that's my neckline? Well, there's more information that goes into it as well because you also have this downtrend right here You see how we you have one two three. You see how we put this double top Remember this is a weekly you see this double top right here that we put This is definitely a downtrend 100% because you get this the next point of contact right here directly Correlating with it now you do get on top of it and see how it's holding above that downtrend and then we get bullish Well, look at where we come in contact with this again right at our neckline where we are determining our long-term trend line So let's say in a scenario You weren't able to identify this long-term trend line Well, you definitely should have had this downtrend in right there No question about that and you get this nice little pop You're waiting for this neckline on this initial drop you've missed out on your neckline Let's say let's say you missed this opportunity right here and it runs and you're like man I should have I should have really just bought some anyways Well, you ended up getting rewarded on this neckline and a back test of the top of this downtrend Look at that entry right there. You want to talk about a world-class entry It was right there and you hit on your three-to-one risk reward, which is a 68% trade I mean that's that's damn impressive right there if you asked me But nonetheless those were the points that I wanted to get across in this video I know it's pushing a little bit longer. We're sitting around 15 minutes But I really good information going over on the chart and we are going to make another charting video where we focus more on this time frame I just had too much information I wanted to get across and more in particular we are going to be matching up. I don't know why it just changed on me Pretty interesting that it changed in the middle of my video like that But nonetheless, we are going to match up the valuations that we marked for the company in the third video to the chart And we're going to focus more on the short term for the next video So if you're interested if you liked everything that you see in this video You're going to want to make sure you see the next one because we're going to talk about potentially starting a position how I'm Possibly could go about looking at something like that and we did have an uptrend right in here I'm not going to go back to the beginning, but you do have a nice uptrend in here and we're getting close to that So I'm going to talk about all that stuff in the next video. Hope you guys like the content. See you on the next one