MNP is within timing for a weekly low, looking at the weekly chart, it does not present with ideal oversold conditions.
Price going below 20 March low lets us know that the weekly low price is not yet in, next point is for price to go above the blue resistance & close above the 10 day moving average on daily basis to know we are beginning a new daily cycle. The weekly low confirmation is on closing above the pink dotted line on a weekly basis.
The wedge remains as worry as it would be bearish, stop loss is price closing below R262.45
Price going below 20 March low lets us know that the weekly low price is not yet in, next point is for price to go above the blue resistance & close above the 10 day moving average on daily basis to know we are beginning a new daily cycle. The weekly low confirmation is on closing above the pink dotted line on a weekly basis.
The wedge remains as worry as it would be bearish, stop loss is price closing below R262.45
Comment:
MNP has managed to go below 20 March, so 22 June becomes the day for a weekly, we can expect price to move towards the pink dotted line.
Comment:
We have arrived at the pink dotted line, with conditions overbought & in time for a half cycle top, expectation is for price to consolidate below the pink line for a few days then break above enroute to the daily cycle high which can be at the green resistance.
Comment:
Mondi finds itself at the yearly declining trendline, we expect price to close above the green line on a monthly basis & we expect it to set the yearly cycle high price before declining.
Trade closed manually:
Mondi cycle has failed, we turn bearish from here until next cycle low.