MTN Group Ltd: A Good Time To Buy

9 March 2017 | Moxima Gama
 


BOTTOM LINE: MTN has been range bound between 15,650cps and 10,475cps

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Possible scenario

After maintaining support at 10,475cps, MTN breached the resistance trend-line of its medium-term bear trend. It confirmed a positive breakout above 12,740cps, and then pulled back from an overbought position - as a return move, which is a common reversal after a breakout.

Now that MTN is regaining composure, we expect it to trade through our buying level at 12,740cps once again. Investors could increase positions at 13,500cps, and the target remains at 15,650cps.

Alternative scenario:

A reversal below 11,975cps could see MTN retest its key support level at 10,475cps, and a failure to hold there would extend medium-term downside through 9,500cps.

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Moxima

Moxima Gama
Technical Analyst, Sharenet

Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.

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Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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