British American Tobacco shares extend five-day rally as RSI signals overbought levels

what happened

According to Seeking Alpha, British American Tobacco shares climbed about 1.42% on Wednesday to roughly $56.44. The stock has now closed higher for five sessions in a row, and its 15-minute chart shows a steady run of higher lows with no lower closes over the past week. The RSI rose to 71.26, entering overbought territory, while the MACD histogram stayed positive at 0.1441.

A separate Seeking Alpha analysis points to gains in Velo's market share, improving margins in New Categories, and a valuation near 10 times 2027 earnings with a dividend yield of around 6%. The author expects double-digit earnings growth through 2028. Jefferies analyst Andrei Andon-Ionita reiterated a buy rating in late September, citing next-generation products, cost discipline and possible margin growth, and noted the planned Camel Craft launch in four U.S. states in the fourth quarter of 2026.

Despite the recent gains, the stock is still down 0.95% year to date, while the S&P 500 is up 14.03%.

why it matters

For investors, the key question is whether the shares can hold their gains with the RSI in overbought territory. Strong dividend yield and steady cash flows support interest in the stock, but higher bond yields can make dividend payers less attractive to income-focused investors.

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