BOTTOM LINE: MTN has been range bound between 15,650cps and 10,475cps
After maintaining support at 10,475cps, MTN breached the resistance trend-line of its medium-term bear trend and is now consolidating between 13,500cps and 10,955cps. We expect gains through 13,500cps to prompt upside to the 15,650cps major resistance level, but before that, the mega-overbought 3-week RSI should trigger a near-term sell-off.
Support retained above 10,955cps - thereby forming another rising bottom - should see MTN recover its losses and attempt to overcome the 13,500cps level.
A downside through 10,955cps would place the 10,475cps key support mark back into the spotlight. Failure to hold there would extend medium-term downside through 9,500cps, towards 7,325cps.
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.