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Imperial Brands Share Price Falls Below 20 Day Moving Average
Imperial Brands share price has fallen below its 20 day moving average.
The share price of Imperial Brands (IMB) has fallen below its 20 day moving average, indicating a potential downtrend. The stock closed at 2,074 pence on Friday, which is below the 20 day moving average of 2,080 pence.
Technical Analysis
The 20 day moving average is a technical indicator that is used to identify the short-term trend of a stock. When the share price falls below its 20 day moving average, it is a sign that the downtrend is gaining momentum.
Other technical indicators are also pointing to a potential downtrend. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below its signal line, which is another sign of a downtrend.
Fundamental Analysis
The fundamental analysis of Imperial Brands is also mixed. The company has reported strong earnings in recent quarters, but its revenue has been declining. This is due to a number of factors, including the decline in smoking rates and the increasing popularity of e-cigarettes.
Imperial Brands is also facing regulatory challenges. The European Union is considering a number of measures to reduce smoking rates, which could hurt the company's sales.
Conclusion
The technical and fundamental analysis of Imperial Brands is pointing to a potential downtrend. Investors should be cautious about buying the stock at this time.
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