BTI's Sustained Six-Session Winning Streak: A Momentum Investor's Case for a Bullish Trend

British American Tobacco PLC (BTI) has recently captured the attention of momentum investors with a six-session winning streak, driven by a confluence of technical indicators and institutional activity. This article examines whether the stock's recent performance aligns with the principles of momentum investing and whether technical analysis confirms a durable bullish trend.

Technical Indicators Signal Strong Momentum

The technical case for BTI begins with its Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements. As of the latest data, BTI's 14-day RSI stands at 75.98, indicating an overbought condition, according to a Investing.com technical analysis. While overbought levels can signal a potential pullback, they also reflect strong short-term buying pressure-a hallmark of momentum investing. Complementing this, the Moving Average Convergence Divergence (MACD) indicator, which tracks the relationship between two moving averages of a stock's price, shows a value of 1.31, a clear buy signal, per the same Investing.com technical analysis.

The stock's moving averages further reinforce the bullish narrative. BTI's 5-day, 50-day, and 200-day moving averages (55.17, 53.44, and 51.95, respectively) are all in ascending order, forming a "golden cross" pattern typically associated with upward momentum, according to a Financhill chart. This alignment suggests that short-term traders and long-term investors are both accumulating the stock.

Institutional Activity Adds Weight to the Bull Case

Beyond technicals, institutional activity provides additional validation for BTI's momentum. In Q2 2025, Souders Financial Advisors increased its stake in BTI by 52.2%, acquiring 9,043 additional shares to hold 26,379 shares valued at $1.25 million, according to a MarketBeat filing. Similarly, Trivest Advisors Ltd made a new investment of 1,270,000 shares, valued at $60.1 million, now constituting 2.3% of its portfolio, according to a MarketBeat filing. These moves by seasoned investors signal confidence in BTI's fundamentals and long-term prospects, a critical factor for momentum strategies that rely on following the "smart money."

Risks and Considerations

While the technical and institutional signals are overwhelmingly positive, investors should remain cautious. An RSI above 70 often precedes corrections, and BTI's 75.98 level suggests the stock may be due for a consolidation phase. Additionally, the 5-day moving average in one analysis briefly suggested a sell signal, though this was outweighed by the broader buy consensus, according to the Financhill chart. Momentum investors must monitor for divergence between price and indicators-a sign that the trend may be losing steam.

Conclusion

BTI's six-session rally, supported by overbought RSI levels, a bullish MACD, and ascending moving averages, presents a compelling case for momentum investors. The recent surge in institutional ownership further validates the stock's appeal. However, as with all momentum strategies, the key to success lies in disciplined risk management and vigilance for early signs of reversal. For now, the technical and fundamental indicators align to suggest that BTI's bullish trend is not merely a short-term anomaly but a trend worth tracking.