Tuesday, 16 April 2024 | 06h30
Reading Time: 1 Minute
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In financial markets, ‘sticking to the plan’ can hinder a trader’s performance.
This is especially true when new information emerges.
As always, traders need to adjust or switch gears in real-time.
My view on MTN was for the share to potentially overshoot resistance around the declining 75-EMA, followed by a pullback. (see chart presented on 28 March).
The above view has unfolded exactly as expected (see chart below)
New Information: Increased Geopolitical Tensions (MTN Iran Exposure)
The price has traded into the ‘new’ buy zone however, candle structure remains weak, with some indecision as denoted by the ‘doji’ (as of intraday). Because of the NEW information (Iran/Geo-Political risks), I am NOT 100% confident that this level will hold.
The rating is ‘WEAK’ and approaching ‘HIGH BEARISH MOMENTUM’.
This Wednesday (17/04), the share goes ex-dividend for 300c hence we could see the share close the gap at around 8400c.
If you make use of the Tactical Trading Guide, you will recall the end of day reading for MTN on Thursday 04 April. The SHORT TERM reading provided further support to the manual review, informing traders that the preceding move was strong and that buyers were in control, however, warned that a failure to hold the highs could result in the share pulling back toward the 8-EMA (short/sell) opportunity. Subsequently, the share failed to hold it’s highs and the share has pulled back, as discussed above.
Lester Davids
Analyst: Unum Capital
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