MPact Limited loading & packing fuel for a trip beyond R55.00?
JSE:MPT tumbled from its all-time highs of R54.99 in February 2016 and melted all the way down to find support at R1.11 in the first week of March 2020, closing the week with a beautiful hammer candle. The instrument then went on a massive rally to R37.50 and has since been consolidating.
The stock is trading at R29.50 and looking at recent price action, it has been consolidating in the form of a bullish flag above a hidden flip zone that's sitting around R25.70 ~ R23.20. Within the big bullish flag we can see an internal mini bullish flag that has been forming since mid October 2023 and started off with a Dragonfly Doji from the flip zone representing buyers' interest in the stock.
A strong bullish breakout of this internal bullish flag will be a sign that the bigger flag will also be broken out of. This will send the instrument back to test the strong supply zone from May 2016 sitting between R44.50 and R47.50, effectively closing the market gap that exists between R43.00 and R44.50. Another consolidation is expected at these levels and if buyers are still strong, the instrument could be seen reaching for R55.00, R60.00 and R96.50 in the long term, with a wild extension of wave 5 targets sitting at R132.80.
Current sentiments: Strongly bullish once the instrument strongly goes above R30.00 and then HODL. Bullish sentiments will be turned to neutral below R28.00 and completely wiped off the table below R23.20.
The stock is trading at R29.50 and looking at recent price action, it has been consolidating in the form of a bullish flag above a hidden flip zone that's sitting around R25.70 ~ R23.20. Within the big bullish flag we can see an internal mini bullish flag that has been forming since mid October 2023 and started off with a Dragonfly Doji from the flip zone representing buyers' interest in the stock.
A strong bullish breakout of this internal bullish flag will be a sign that the bigger flag will also be broken out of. This will send the instrument back to test the strong supply zone from May 2016 sitting between R44.50 and R47.50, effectively closing the market gap that exists between R43.00 and R44.50. Another consolidation is expected at these levels and if buyers are still strong, the instrument could be seen reaching for R55.00, R60.00 and R96.50 in the long term, with a wild extension of wave 5 targets sitting at R132.80.
Current sentiments: Strongly bullish once the instrument strongly goes above R30.00 and then HODL. Bullish sentiments will be turned to neutral below R28.00 and completely wiped off the table below R23.20.