Shares of Imperial Brands Plc (LON: IMB) have done quite well recently since the stock is up 9.58% this month after hitting a major support level.
The company was stuck in a major downtrend as shown by the channel drawn on the chart below and the stock is currently at the upper end of the channel where it is likely to meet some resistance.
Like other tobacco companies, Imperial Brands has struggled in recent years as consumer preferences shift away from smoking, which is now widely regarded as an unhealthy addiction and being shunned by most people.
The company has tried to transform its business by launching its Next Generation Products (NGP), which it says are more health-friendly smoking products such as vapours.
Vapes are quite popular with younger consumers in developed countries, but a huge part of its revenues still come from traditional cigarettes in developing nations.
As traders, we are looking to see if the price shall break above the channel or turn lower. Those who took positions at the start of the month are sitting on some nice profits.
Imperial brands share price
Imperial Brands shares are up 9.58% this month having started the month trading at 1252.5p before rising to a high of 1372.5p.