MTN Group (MTN) | Strong upside follow-through from prior bull-bear pivot at 12189c to test (flagged 19-December) to test a high of 13742 on Friday. SENS after market close with relating to Ghana tax issue could be the reason it will have to pull back from resistance. My price action data states ‘approaching overbought’.
It took a while, but the long position on JSE:MTN was finally triggered with yesterday's price action. Today's move is looking good for a continuation to the upside. Target at the 146 level
MTN is still trading in its longer term bearish channel after price rejected its 1 year moving average during early December
so long as the bears can keep prices sustained below the R143 mark there should be more downside to come
MTN initially broke the down channel but it didn't last long, monitoring this current position to see if it can move up from here.
I would like to hear your thoughts, let me know.
A few days ago (see original post attached) I mentioned 12189c as a key (potential) reversal level. This was identified via my Automated Price Action Guide as the bull-bear pivot. On Monday we saw the share trade below this level before quickly reclaiming it to close the session higher by nearly 400c (a great opportunity for intraday or ultra short term traders)....
Levels I would be considering going into next week.
The table is via my automated price action model (which is subject to daily change).
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Price has broken out of a declining wedge within a bullish channel. It may be giving a perfect good by kiss on the declining wedge which also coincides with the EMA50.I Will buy above 13981 with a target of 15979. Stop loss at 13000.
MTN GROUP (MTN) - On Monday 24 October I discussed the share potentially trading lower and rebounding off the trend line (lower boundary). Subsequently, we saw a sell-off on the same day, followed by a strong reversal in the following session, with continued upside through to Friday and a six-week high of 13881c. Potential upside resistance is the channel trend...
A simple analysis of MTN following a 47% dip from the 52 week high.
MACD/price convergence signals the selling momentum is waning.
The resistance trendline has not yet been broken convincingly.
Use R112,62 as stop-loss level.
MTN has managed to reclaim long term support (TL) but is now facing a little resistance at R133.50 - downward TL. A close above R137.59 would probably see it make a move higher towards its 200DMA. We wait for confirmation of a breakout before entering a long.
MTN monthly candlesticks have printed out a nice break and pullback to the previous support level that has become resistance and has reacted accordingly with some bearish momentum over the past few months, I therefore expect a longer term bearish view on MTN stocks to somewhere 2682 ZAC.
MTN has had a torrid August and is approaching a 'minor' support were the downward pressure could ease. Only a daily close above the previous day high will signal an indication of the bulls attempting to fight back.
Oscillators are in oversold territory .
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
